Rupiah Closes at Rp12,053 on Thursday Evening
23 October 2014 19:06 WIB
TEMPO.CO, Jakarta - The rupiah interbank exchange rate in Jakarta slid by 40 points on Thursday evening to Rp12,053 per United States (US) Dollar—down from its previous position at Rp12,013 per US dollar.
"The US dollar is gaining some traction in the global market, which pressures the performance of the rupiah," said an analyst for Monex Investindo Futures, Zulfirman Basir.
Basir said the US dollar is on the rise following the release of US inflation figures, which rose as expected—positive news, as the end of the Federal Reserve Bank of America's obligation buyback program and the Federal Open Market Committee (FOMC) meeting near on October 30.
The US dollar, according to Basir, is also aided by positive consumer price index figures in the US, which exceed market expectations.
The US dollar's gains also came amid worries that stemmed from the failure of several major European banking corporations' failure to pass the recent stress test—driving more investors to seek out US dollar as a buffer against potential losses.
Investors are also waiting for President Joko Widodo and Vice President Jusuf Kalla to announce the line-up of their cabinet. "It is hoped that Jokowi-JK could commit to structural reforms, which will undoubtedly will benefit Indonesia's economy," said Basir, who predicts that the rupiah will continue to hover between Rp12,000 to Rp12,060 per US dollar for the time being.
Bank Indonesia's middle rate on Thursday, October 23, 2014 stood at Rp12,034 per US dollar—down from its previous position at Rp12,026 per US dollar.
ANTARA