US Economy Data Propels Rupiah Exchange Rate
24 April 2015 14:54 WIB
TEMPO.CO, Jakarta - The Rupiah interbank exchange rate managed to gain 24 points on Friday, April 24, 2015, and make its way to a level of Rp. 12,923 per US Dollar.
Reza Priyambada, Head Researcher of NH Korindo Securities said that easing concerns against the increase of the Federal Reserve (The Fed) interest rate is one of the main supporter of the increasing Rupiah exchange rate.
"Unimproving data on the United States economy has encouraged market players to actively trade high-risk currencies, including Rupiah, which in turn slows down the US Dollar in domestic foreign exchange market," Reza said.
Meanwhile, the Chinese government's plan to resolve its industrial slowdown brings hope for investors that the move will improve global economic conditions.
"Although the strengthening [of Rupiah exchange rate] is not enough to confirm further increase, postive expectations generated from external and domestic factors related to the soon-to-be-released gross domestic product data will keep Rupiah fluctuation relatively stable with positive prospects," Reza added.
Rangga Cipta, an economist from Samuel Securities said that almost all of the economic data announced by the US were worse compared to previous data. Rangga added that investors' focus will shift to the Federal Open Market Committee meeting that will be held sometime next week.
"If the Fed continues to delay increasing its benchmark interest rate, it is almost certain that the US Dollar will experience a weakening trend," Rangga said.
ANTARANEWS