Rupiah Hits Rp12,482 per US Dollar on Thursday's Close
29 January 2015 19:40 WIB
TEMPO.CO, Jakarta - Rupiah's interbank exchange rate in Jakarta on Thursday, January 29, 2015, went slightly up by five points to trade at Rp 12,482 per United States (US) Dollar - up from its' previous position at Rp. 12,487 per US Dollar.
"The Federal Reserve Bank of America [The Fed] is choosing to delay raising its' core interest rate, which is helping the Rupiah regain some of its' lost value," said the Head of Research at Monex Investindo Futures, Ariston Tjendra.
That said, continued Ariston, the domestic gains will remain limited, as The Fed has improved its' outlook on the US economy as well as its' domestic market, despite inflation is set to slow down even further.
"The expansion of US economic activity is on the right track, the condition of the labour market is improving, and unemployment is in decline," said Ariston.
The recent meeting of the Federal Open Market Commission (FOMC) said that the Fed predicted that its' short term inflation is set to decrease, but it will slowly climb towards two percent as the effect of the low global oil prices begins to subside.
An analyst for Bank Himpunan Saudara, Rully Nova, added that the European Central Bank's (ECB) plan to roll out its' financial stimulus packages could help to prop up Rupiah's value should the Fed decides to raise its' interest rates.
"ECB's quantitative easing policy will increase the amount of liquidity worldwide, and developing countries - including Indonesia - could benefit from its' realization," said Rully.
ANTARANEWS