Rupiah Slid by 34 Points on Friday's Close  

TEMPO.CO, Jakarta - Rupiah's interbank exchange rate in Jakarta slipped by 34 points at the end of Friday's trading session to conclude trading at Rp 13,492 per US Dollar - down from its' previous trading position at Rp 13,458 per US Dollar.

"The US Dollar is appreciating against the majority of Asian currencies - including the Rupiah - as there are stronger indications that the Federal Reserve Bank of America may indeed decide to raise its' core interest rate sooner than expected, especially considering that its' Gross Domestic Product (GDP) for the the second quarter (Q2) of 2015 has climbed," said an analyst for Bank Himpunan Saudara, Rully Nova.

Rully said that the US GDP figures has grown by 2.3 percent in Q2, which could possibly drive up the US Dollars value further, especially if other economic indicators - such as its' non-farm payrolls (NFP) exceeds market's expectations as well.

That said, the Rupiah manages to defend itself from further losses against the Dollar as BI continues to intervene in the domestic foreign exchange market - which has helped the Rupiah contain the Rupiah's fluctuation in a narrow band.

"It is hoped that Indonesia's economic performance figures in the Q2 of 2015 could remain positive, as to prevent the Rupiah from plunging further," said Rully.

The Head of Research for Monex Investindo Futures, Ariston Tjendra, said that the Rupiah's is held back from depreciating further as some investors are waiting for the US government to release several other figures - slated for next week - which includes NFP figures for the months of April until July.

"Previously, investors were simply looking for cues from the Fed, which causes the Rupiah to fluctuate. Now, there are more factors to consider - which narrows the band quite significantly," said Ariston,

BI's middle rate stands at Rp13,481 per US Dollar at Friday's close, after having closed at Rp13,468 per US Dollar on Thursday, July 30, 2015.

ANTARANEWS