Indonesia Authorized Money Changer

Dollar Downtrend Trigger a Rise in Gold Prices

April 11th, 2011 - Tags: , , , , , , , , , , , , , , , , ,
Posted in Umum

RMC -Rupiah increasingly victorious earlier this week even penetrate its strongest level since last 7 years ie at the level of Rp.8637 per U.S. dollar. This is affected by the policy of Bank Indonesia to keep rupiah rise to control inflation from raising interest rates on loans. Besides, the increase Indonesia’s debt ratings published by Standard & Poor’s from BB to BB + on April 8, further confirmed the position of the rupiah.

In contrast with the increasingly weakening dollar due to the delay in the Fed (The Federal Reserve) raising its benchmark interest rate after the asset purchase program worth U.S. $ 600 billion ends next June. while strengthening currency will depend on the actions of the Central Bank against its benchmark interest rate so that the funds will flow into assets with a yield of centipede while the U.S. will keep its interest rate hikes as long as it is this which makes dollar worse off if the move also will move few.

The fall in the dollar has sparked rising gold prices as investors began to switch from investing dollars to invest in gold is considered the most secure post-uncertain U.S. economy. Until the end of this year gold price predicted to reach 1550 dollars per troy ounce. Besides the onslaught of China and India buy up gold contributing rising gold prices. (Winnie)