Rupiah Trades at Rp12,155 per US Dollar
29 October 2014 12:14 WIB
TEMPO.CO, Jakarta - Rupiah's interbank exchange rate in Jakarta went up by 14 points to begin trading at Rp12,155 per United States (US) Dollar - up from its position at Rp12,169 per US Dollar.
"The majority of US economic figures remain below market expectations, which opens up some room for the Rupiah to regain some of its' value," said Monex Investindo Future's Head of Research, Ariston Tjendra.
Ariston said that the under-performing US durable goods data adds to worries about the state of the world's largest economy. Recent figures released by the US Department of Trade said that orders in September declined by 1.3 percent.
"The condition adds weight to predictions that the Federal Reserve Bank of America will not raise its' core interest rates before mid-2015, especially amidst mixed US economic indicators," said Ariston.
According to Ariston, if the Fed decides to maintain its low interest rate policy for an undetermined amount of time, then market players are likely to unload their US Dollar-denominated assets in order to shield themselves from potential losses.
Meanwhile, the Head of Research at Woori Korindo Securities Indonesia, Reza Priyambada, said that the US Dollar's depreciation could be attributed to uncertainties surrounding the upcoming meeting of the Federal Open Market Committee, which comes amidst the release of a number of US economic indicators, which remains varied up to this point.
"That said, Rupiah's movements will remain limited as rife speculation that the government might postpone its' plan to raise the price of subsidised fuels," said Reza.
ANTARA NEWS