Rupiah Performs Well Despite Crude Oil Prices Remain Low
3 February 2016 07:22 WIB
TEMPO.CO, Jakarta - The Head of Research for NH Korindo Securities Indonesia, Reza Priyambada, said that there is a technical possibility for the Rupiah to continue its uptrend on Wednesday's trading session, propped up by its stable inflation. That said said, the uptrend is expected to remain limited and short-term in nature, as prices of crude oil continue to fall.
"The Rupiah's expected to hover between Rp13,545 and Rp13,690 per US Dollar, but I advise investors to remain cautious of the Rupiah's movements today," said Priyambada on Wednesday, February 3, 2016.
Crude oil prices once more dropped below US$30 per barrel, which puts a significant pressure on resource-based economies of the world, which have been hit quite hard as the prices of commodities continue to fall - resulting in the general appreciation of the US Dollar against the currencies from these mostly-developing, resource-based economies.
Indonesia manages to be an exception because market players are still buying the US Dollar - which had depreciated against the Rupiah in the past few days - but its numbers are plateauing, said Reza.
Worry not, because the although the outlook is bleak - Bank Indonesia (BI) records remains in the green - possibly because Moody's recent affirmation of its economic credentials.
Rupiah had traded around Rp13,610 per US Dollar, while it had traded at Rp13,635 per US Dollar on the previous day on the spot market - signifying an uptrend, albeit slightly. Low crude oil prices, if allowed to continue, may hurt Indonesia as the US Dollar will resume its uptrend.
DESTRIANITA KUSUMASTUTI