The rupiah interbank trade rate in Jakarta on Friday morning depreciated by five basis points to Rp 12,295 per US dollar, down from Rp 12,290 per US dollar in the earlier trading.

Woori Korindo Securities Indonesia head of research Reza Priyambada said that the depreciation of the domestic currency was caused by the appreciation of the US dollar in the global market following the US economic recovery.

“External sentiments are strong in the market. The players are pessimistic that the rupiah will strengthen,” Reza said as quoted by Antara news agency.

He said that the investors tended to keep their assets in the US since US economic fundamentals were getting better. – The Jakarta Post