TEMPO.CO, Jakarta – Over the last week, the rupiah exchange rate had been in a downward trend at around Rp11,600-11,800 per US dollar. However, analysts said the rupiah's weakenind did not result rom the presidential election dispute case.
M. Doddy Ariefanto, a banking expert at the Deposit Insurance Agency (LPS), said market makers were optimistic of the Constitutional Court (MK) ruling today, which they projected to be in keeping with the decision of the General Election Commission (KPU).
“Market makers indeed are concerned about the MK ruling, but they seem to be somewhat optimistic,” Doddy told Tempo on Thursday, August 21, 2014.
Doddy predicted the rupiah exchange rate would be similar to this week's at around Rp11,600-11,700 per US dollar, provided that nothing controversial took place.
“What needs to be anticipated is that if [the Constitutional Court] favored the plaintiff, the market would be volatile for a long time. But that'll be the day,” Doddy said.
Similarly, Trust Securities Research head Reza Priyambada said the phenomenon did not ensue from the MK ruling, but rather a result of the strong appreciation towards the US dollar.
However, Reza admitted the election result somewhat affected the currency.
“The rupiah is weakening and would continue to tumble whenever MK issued a controversial decision,” Reza said on Thursday, August 21, 2014.