TEMPO.CO, Jakarta - Rupiah interbank exchange rate in Jakarta drops by 20 points on Friday, February 12, 2016 trading session to a level of Rp 13,483 per US Dollar after previously traded at Rp 13,463 per US Dollar
"Global crude prices that continues to experience negative trend has become one of the obstacles for the Rupiah to improve," said Reza Priyambada, a researcher from Korindo Securities Indonesia in Jakarta on Friday, February 12, 2016.
Reza added that weakening of Rupiah also occurred in line with market players' profit taking action following the currency's recent significant-but-temporary improvement.
"Short-term oriented market players tend to do profit taking actions, as a result, the Rupiah’s progress become hampered," Reza said.
Nevertheless, Reza said that Rupiah's downtrend can be considered limited by the Federal Reserve's plan to increase its interest rate. Speculations about the Fed's plan, according to Reza, has helped to increase the influx of foreign funds to Indonesia, which in turn prevented the Rupiah from being pushed even further.
"The flow of fund was triggered by the stabilizing economic condition of Indonesia, and also good investment grade provided by international ranking agencies," Reza added.
Rully Nova, money market observer from Bank Himpunan Saudara added that the 10th economic policy package issued by the government could present good prospects from the country's economy.
"Rupiah exchange rate can still move into the positive zone," Rully said.
ANTARA
