Rupiah Waits for KPU Announcement
21 July 2014 14:12 WIB
TEMPO.CO, Jakarta - The rupiah is edging up against the US dollar nearing the announcement of the presidential election vote count, reaching a rate of Rp11,615 per US dollar. Believing that candidate number two, Joko Widodo-Jusuf Kalla, will win the election, investors bought ample volumes of rupiah-based assets.
Overseas, recaps show that Jokowi-Kalla garnered 364,283 votes, higher than rival Prabowo Subianto-Hatta Rajasa's 313,600 votes. Domestically—based on counts in the 30 provinces—Jokowi-Kalla so far leads by 5.38 million votes.
Forex analyst Lindawati Susanto said that the Election Commission's (KPU) count that is similar to the quick count results reduces the level of political uncertainties. Ergo, she said, market participants will not hesitate to buy rupiah-denominated portfolios.
"Joko Widodo and Jusuf Kalla's lead in [KPU's] recap becomes the main consideration for investors to trade," she said.
Today the rupiah is predicted to move between Rp11,525 to Rp11,650 per US dollar. "Despite the tendency to strengthen, however, the rupiah rate will remain limited by the end-of-month dollar demand," she said.
PDAT | MEGEL JEKSON
