Saturday, 19 January 2019

US-China to Have Session, Rupiah Predicted to Bounce Back

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  • Illustration of Rupiah currency (ilustrasi rupiah)

    Illustration of Rupiah currency (ilustrasi rupiah)

    TEMPO.CO, Jakarta - Panin Sekuritas Analyst William Hartanto predicted rupiah exchange rate would strengthen today, moving between Rp15,5100-Rp15,250 against the US dollar.

    “US and China will have a dialogue, and that is a positive sentiment for the rupiah,” said William via a phone call, Wednesday, Oct. 31.

    The same sentiment was also shared by Muhammad Alfatih, a Senior Technical Portfolio Advisor of PT Samuel Sekuritas. Alfatih predicted rupiah would bounce back today–despite in a short-term, at around Rp15,150-Rp5,300 per US dollar.

    “[Rupiah] tends to strengthen for a short term because of the correction yesterday. While for the medium term, the rate tends to weaken,” said Alfatih.

    He explained USD Index that was still strengthening to 100-103 from presently 93 would affect the rupiah exchange rate for the medium term. Brent oil, Alfatih added, would increase ahead of the cold season.

    “In general, ahead of year’s end, the need on US dollar increases, as well as repatriation of dividends and loan payment,” he noted.

    The exchange rate of rupiah against US dollar weakened yesterday, Oct. 30. Based on Bank Indonesia's (BI) website, Jakarta Interbank Spot Dollar Rate (JISDOR) the rate stood at 15,219 per US dollar on October 29 and at Rp15,313 on Oct. 30.