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Fuel Price Hike Delayed; Rupiah Gains

28 August 2014 12:26 WIB

Stasiun Pengisian Bahan Bakar Gas (SPBG). Tempo/Dian Triyuli Handoko

TEMPO.CO, Jakarta – Analyst said the government's decision to delay the price hike for subsidized fuel helped the rupiah strengthen. The gain however, will be brief, said Trust Securities' chief researcher Priyambada Reza.

"The price increase will not collapse the economy. It's just a shock therapy that will only last temporary," Reza said in a release Tempo received on Wednesday, August 27.

On Wednesday's currency market, the rupiah rose 0.21 percent to close at 11,682 per US dollar. For today's trade, Reza estimated Bank Indonesia (BI) middle rate to be in the range of Rp11,712 to Rp 11.695 per US dollar. The appreciation of several Asia Pacific currencies is expected to serve as a positive sentiment for the rupiah to maintain its gain.

DEWI SUCI RAHAYU

Currency Rates


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