Rupiah, based on the exchange rate of Bank Indonesia (BI) in late trade on Friday (11/26/2010) weakened to Rp8.966 per USD, compared with its position in late trading yesterday in Rp8.958 per USD.
Meanwhile, according yahoofinance, the rupiah has touched even Rp9.007 level, 5 per USD, the daily trading range is the 0.5-Rp9 Rp8.962 .012,5 per USD.
Not only dollars, the euro also looked depressed and weakened over the U.S. dollar to 1.3281 per U.S. dollar. Likewise with the yen weakened to 83.8650 per USD.
Indonesian Securities analyst Samuel Lana Soelistianingsih in his research said the Irish and Spanish bond prices continued to pressure and make the U.S. dollar strengthened against the euro.
He explained the problem of debt in Ireland and now Spain is still a global investor attention. Spain and Irlandi bond prices fell after the LCH Clearnet Ltd, raising trading costs (cost of trading) of Ireland's debt.
Spanish bond yields rose 11 bps in the last eight days, while Ireland increased by 18 bps in three days. These pressures give advantage to the European markets, the strengthening U.S. dollar, and rising oil prices.
Ireland received a bailout worth UDD113 billion or 85 billion euros was not strong enough to calm markets. Negative sentiment towards the debt crisis in Europe also pressured the German government bond yields which rose by 19 bps to 6.37 percent.Market volatility has also spread to other emerging markets including Indonesia.
