Correction Phase Ends; Rupiah Rebounds
22 December 2014 08:52 WIB
TEMPO.CO, Jakarta - The rupiah managed to rebound from last week's fall, closing last week's trade at Rp12,497 per US dollar following Bank Indonesia's interventions and investors' profit-taking.
Tony Mariano, chief researcher at PT Harvest International Futures, said the Fed governor Janet Yellen' statement that the US central bank is not rushing to raise interest rates gave a negative impact on greenback gain.
"If we refer to the latest economic data, which is 1.2 to 1.3 percent of inflation and 5.9 to 6.0 percent unemployment rate, a Fed Rate hike will not happen any time soon," Tony said.
The rupiah rebound was also supported by the shrinking dollar demand in the domestic market. The Fed's uncertainty regarding its benchmark interest rate prompted investors to lower their greenback need.
"When the dollar supply in the domestic market increased due to the intervention of BI, the demand is actually shrinking," he said.
Tony is optimistic that the rupiah will continue to strengthen to Rp12,300 per US dollar this week Coupled with a possible window dressing in the stock market, investors' interest in rupiah-denominated assets is likely to increase.
For the beginning of the week, the rupiah is expected move between Rp12,350 and Rp12,550 per US dollar. "The correction phase has ended, the rupiah could return to its fundamental level," he said.
PDAT | MEGEL JEKSON
