Rupiah Trades at Rp12,434 per US Dollar on Monday Morning

TEMPO.CO, Jakarta - Rupiah's interbank exchange rates in Jakarta on Monday morning went up by 63 points to trade at Rp12,434 per United States (US) Dollar - up from its previous position at Rp12,497 per US Dollar, as reported by Antara News.

The Head of Research at Woori Korindo Securities Indonesia, Reza Priyambada, said in Jakarta on Monday that the Rupiah is recovering as a result of the recent result of the Federal Open Market Commission (FOMC) meeting. "The FOMC has yet to signal that they will proceed to raise their core interest rates, which gives the Rupiah some positive boost," said Reza.

On the other hand, the Rupiah is moving upwards as Bank Indonesia (BI) continues to intervene to honour its commitment to keep the Rupiah stable between Rp11,900 to Rp12,300 per US Dollar. "The positive sentiments generated by BI's intervention may allow the Rupiah to climb further," said Reza.

That said, the high demand for the US Dollar for the payment corporate debts and obligations, as well as the continuously recovering US economy, is still shadowing the Rupiah's uptrend - as a result, the Rupiah may experience negative corrections should the greenback continues to climb.

An analyst for Monex Investindo Futures, Zulfirman Basir, added that the greenback's growth is beginning to plateau as trading began across Asia, which gives a positive boost for the Rupiah. Significant amounts of US Dollars are being released into the global market as investors seek to profit from its' recent appreciation against the majority of the world's emerging currencies.

Investors are also becoming less worried over the state of the world's economy as the global commodities' prices, as well since the Rouble fluctuations begin to stabilise, which could assist in sustaining Rupiah's uptrend, said Basir.

ANTARA NEWS