Rupiah Went Up by Seven Points on Thursday's Close

TEMPO.CO, Jakarta - Rupiah's interbank exchange rate in Jakarta went slightly up by seven points to close at Rp 12,968 per US Dollar at the end of Thursday's trading session - up from its’ previous position at Rp 12,975 per US Dollar.

"Rupiah is back in the green after having traded at Rp 13,000 per US Dollar in the domestic market, as Indonesia's foreign exchange reserves is expected to remain stable in February 2015," said an analyst for Bank Himpunan Saudara, Rully Nova, in Jakarta on Thursday, March 5, 2015.

According to Rully, Indonesia's foreign exchange reserves in February was considerably stable around the US$114 billion mark - which is equivalent to six months of import payments.

That said, Rupiah's uptrend is expected to remain limited for the time being, as it is shadowed by uncertainties surrounding the US Federal Reserve’s plan to change its' fund rate. "Up until the middle of the year, the Rupiah’s volatility is expected to remain high," said Rully.

On the other hand, speculations surrounding Bank Indonesia’s (BI) plan to slash its’ core rate is driving short-terms investor to pull their funds out of the Indonesian share market, as a lower BI rate could translate to lower investment returns. "However, a lower BI rate could help domestic business to expand, which will help Indonesia’s economic growth in the future," said Rully.

ANTARANEWS