Rupiah Inches Up by 10 Points on Friday Evening
3 October 2014 20:04 WIB
TEMPO.CO, Jakarta - The rupiah interbank exchange rate in Jakarta on Friday evening inched higher by 10 points to close at Rp12,085 per United States (US) dollar at the end of trading, up from its previous position at Rp12,095 per US dollar.
"The uptrend of the US dollar is subsiding, which contributes to the rupiah's gains this weekend, although the gains remain limited in nature," said Zulfirman Basir, an analyst for Monex Investindo Futures, in Jakarta on Friday, October 3, 2014.
According to Zulfirman, many investors choose to release their dollar assets in anticipation of the forthcoming release of the US job figures, which directly relates to US monetary outlook. "Market players are watching the developments in the US economy very closely in order to decide the direction of their future investments," he said.
On the other hand, the US dollar is pressured by the fact that the European Central Bank (ECB) has not yet approved further financial stimulus to stem the its economic decline.
That said, Zulfirman believes that the domestic political situation plays a bigger role in determining the rupiah exchange rate in the future.
"Investors are worried about the next administration's ability to exact its programs due to the absence of significant support in the House of Representatives (DPR). This produces a negative sentiment that will continue to pressure the rupiah if left unaddressed," said Zulfirman.
Bank Indonesia's middle rate on Friday stands at Rp12,144 per US dollar, down from its previous position at Rp12,136 per US dollar.
ANTARA
