Fuel Subsidy Looms Over Rupiah
3 September 2014 12:54 WIB
TEMPO.CO, Jakarta - Pressure from the US dollar appreciation and uncertainties regarding fuel price hikes made the rupiah powerless to advance. On Tuesday's currency market, the rupiah lost 31 points (0.27 percent) to close at 11,748 per US dollar, along with other Asian currencies that were corrected against the greenback.
Bank Mandiri money market analyst Reny Eka Putri said that the domestic economic data improvement, including s surplus trade balance, was unable to help the rupiah withstand the US dollar stronghold against major global currencies.
On the other hand, Reny said, market participants are still waiting for some kind of certainty regarding fuel subsidy removal; whether prices will be raised by the current administration or the next administration. Once the market has some idea on what the fuel policy is, investors will react.
"The market is hoping that Indonesia's double deficits could be reduced gradually," she said.
Today Reny expected the rupiah to move in the range of 11,680 to 11,747 per US dollar.
M. AZHAR
