Rupiah Continues to Trade Above Rp14,000 Against the Greenback
26 August 2015 11:24 WIB
TEMPO.CO, Jakarta - The Rupiah's interbank exchange rate fell again by 11 points at the start of Wednesday's trading session to commence trading at Rp14,065 per US Dollar.
The Head of Research for NH Korindo Securities Indonesia, Reza Priyambada said that the Rupiah continues to trade in the red as signs of Indonesia's macroeconomic recovery has yet to materialise.
"The lack of a balancing sentiment - both from external markets as well from Indonesia's macroeconomic fundamentals means that the government is not doing much to stabilise the fluctuation of the Rupiah," said Reza, who added that a currency war - wherein states race against each other to devalue their currencies - will further weaken the Rupiah.
"Once it happens, it would be extremely hard to make the Rupiah recover," said Reza.
An analyst for Platon Niaga Berjangka, Lukman Leong said that despite all that, Bank Indonesia's (BI) efforts to buy back bonds from from the secondary market has helped the Rupiah from sinking further against the greenback.
"BI's actions will somewhat limit the Rupiah's fluctuations," said Lukman, who added that although rather unsustainable, BI's actions could help alleviate fears among domestic market players - which is quite necessary in light of the constant appreciation of the US Dollar against the world's currencies.
ANTARA