Rupiah Inches on Fed Minutes
9 January 2015 12:08 WIB
TEMPO.CO, Jakarta - The dollar depreciation in yesterday's money market allowed the rupiah to gain 61 points (0.48 percent) to close at Rp12,674 per US dollar, along with the majority of Asian currencies that also strengthened against the greenback.
Platon Niaga Berjangka analyst Lukman Leong said the Fed's Dec. 17 2014 meeting result triggered pressure on the US dollar. "The weakening of the dollar index allowed Asian currencies to strengthen, including the rupiah."
In the minutes released on January 7, 2015, the Fed said it would not make fundamental changes in its monetary policy, including interest rates, until the next FOMC Meeting. This certainty was responded positively by investors.
However, Lukman projected that the rupiah appreciation against the US dollar will be brief, as there are plenty of negative sentiments weighing down on the currency.
"The trade deficit and high inflation rate in 2014 make it difficult for the rupiah to strengthen further," Lukman said.
For today, Lukman estimates the rupiah to move between Rp12,600 and Rp12,800 per US dollars. The lack of positive sentiments supporting the rupiah will prompt investors to hunt dollars. The rupiah is expected to strengthen if Bank Indonesia raises its benchmark interest rate.
M. AZHAR