Rupiah Climbs 30 Points at Friday`s Start
29 May 2015 12:58 WIB
TEMPO.CO, Jakarta - The rupiah interbank exchange rate in Jakarta went up by 30 points at the start of Friday's trading session—up to Rp13,193 per US dollar from its previous trading position at Rp13,223 against the greenback.
"Although the Fed is likely to raise its fund rate later on in the year, the increase is not expected to be significant enough, which means that the US dollar's uptrend will remain limited with a tendency toward a downtrend," said an analyst for NH Korindo Securities Indonesia, Reza Priyambada, in Jakarta on Friday.
On the other hand, continued Reza, market players are upbeat that Greece's debt situation will be resolved by the latest draft of its bailout agreement—a sentiment that has positively impacted the movement of the Euro, and as such is expected to have a spillover effect on other currencies in the developing market, including the rupiah.
Domestically, the government has officially launched the construction of several infrastructure projects—the completion of which is expected to help boost the growth of the Indonesian economy, and thus boost the value of the rupiah in the global market.
The head of research for Monex Investindo Securities, Ariston Tjendra, added that an increased number of unemployment benefits claims in the US was pressuring the Greenback into a downtrend.
"If the number continues to climb, then the Fed may decide to push back its plans to raise its fund rate," said Ariston.
ANTARA