Rupiah Trades at Rp12,970 per US Dollar on Tuesday's Start
28 April 2015 11:28 WIB
TEMPO.CO, Jakarta - Rupiah's interbank exchange rate in Jakarta went slightly up by three points at the start of Tuesday's trading session to trade at Rp12,970 per US Dollar - up from its' previous closing position at Rp12,973 per US Dollar.
"The Rupiah is benefiting from the depreciation of the US Dollar in the global market - that said, its uptrend is expected to remain limited as there is a lack of positive sentiments from the domestic sphere," said an economist for Samuel Sekuritas, Rangga Cipta in Jakarta on Tuesday.
According to Rangga, worries of an economic slowdown - which stems from the under performance of several publicly-traded entities in the first quarter (Q1) of 2015 - is expected to hold the Rupiah back from appreciating further, as such conditions is expected to drive investors to unload their Rupiah-denominated holdings.
In the global market, Rangga explained that the US Dollar is depreciating in light of the slowdown in performance observed in the US services sector - down to 57.8 points in April, from 59.2 points in March.
The Head of Research at NH Korindo Securities Indonesia, Reza Priyambada said that economic figures from the US, which has failed to meet the market's expectation in light of the upcoming Federal Open Market Committee (FOMC) meeting - which is slated to begin on Tuesday, April 28, 2015, local time - has driven investors to speculate that the Federal Reserve Bank of America will not raise its' fund rate for the time being.
"Market players are assuming that the Fed meeting will not result in the raise of its' Fund rate," said Reza, before adding that the Rupiah might not be able to continue its' appreciation against the greenback on Tuesday's trading session.
Reza advises market players to remain vigilant of announcements and sentiments that could possibility push the Rupiah to return into the red.
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