TEMPO.CO, Jakarta - The rupiah interbank exchange rate in Jakarta strengthened by 11 points to trade at Rp12,200 per United States (US) dollar at the end of Tuesday's trading session —up from its previous position at Rp12,211 per US dollar.
The Head of Research at Monex Investindo Futures, Ariston Tjendra, said on Tuesday that the demand for the US dollar was stabilizing as its value peaked, enabling the rupiah to regain some of its value after experiencing some pressures during Monday's trading session.
"The pressures experienced by the US dollar is reflected on the values of other major currencies," said Ariston.
He added that the correction to the US Dollar's value came at the same time as the Bank of Japan's decision to postpone it' plans to ease its monetary policies.
That said, Ariston believes that the rupiah's gain will be rather limited, especially since market players are waiting for the agenda of the Federal Open Market Committee to be released later on in the week.
"Indications of possible Fed rate hike from the meetings may provide a boost for the US economy," said Ariston.
According to him, the US dollar will continue to gain as the US economy is recovering at a more robust rate than previously expected—it is recovering faster that Europe, Japan, and China, which are showing indications of an economic slowdown.
Meanwhile, Bank Indonesia's (BI) middle rate on Tuesday stood at Rp12,190 per US Dollar—down from its previous position at Rp12,212 per US dollar.