TEMPO.CO, Jakarta - The rupiah weakened after having rallied over the past week. In yesterday's money market, the rupiah fell 13 points (0.1 percent) to close at 12,014 per US dollar, while most Asian currencies gained against the greenback.
Platon Niaga Berjangka analyst Lukman Leong said the rupiah stopped appreciating now that investors are back on a wait-and-see stance for the announcement of new president Joko Widodo's cabinet. "The composition of the cabinet will determine investors' next step," he said yesterday.
The rupiah had rallied ahead of Monday's inauguration of President Jokowi. Coupled with the dollar depreciation, the rupiah became Asia's that gained the most throughout last week. Before the inauguration, the rupiah was still hovering at 12,200 per US dollar. Nowadays, it ranges at 12,000 per US dollar.
According to Lukman, investors realize that the rupiah had gained to high, so it is normal for it to experience a slight correction now. In addition, investors feel the need to look at Indonesia's economic growth factors that are not looking too good. "For now, Rp12,000 per US dollar is an appropriate level," he said.
Therefore, he believes that even with the new cabinet announcement, the rate will not stray too much from RP12,000 per US dollar. The risk of a global economic slowdown and the increasing demand for the greenback at the end of the month are expected to encourage investors to hunt down the dollar.
"Today, the rupiah will still move in the range of 12,000 to 12,200 per dollar with a tendency to move flat," Lukman predicted.
PDAT | M. AZHAR