Rupiah Opens at Rp12,078 per US Dollar on Monday Morning

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  • TEMPO.CO, Jakarta - Rupiah's interbank exchange rate in Jakarta went up by seven points on Monday morning - up to Ro12,078 per United States (US) Dollar from last week's position at Rp12,085 per US Dollar.

    "Rupiah is expected to continue its slight uptrend as market players are expecting the Central Statistics Agency (BPS) to release positive economic figures this week," said the Head of Research at Woori Korindo Securities Indonesia, Reza Priyambada.

    Reza continued that market players are positively responding to the government's affirmation of its' commitment to raise the prices of subsidised fuels before January 2015 in order to reduce the stresses on the State Budget (APBN).

    "That said, investors are still keeping an eye out for a possible downtrend if BPS' economic figures do not match their expectations," said Reza.

    A market analyst for Bank Mandiri, Rully Arya Wisnubroto agreed that the government's commitment to its plan to raise the price of subsidised fuel is a contributing factor that boosts Rupiah's exchange rate. Investors are responding positively towards the news because cuts to fuel subsidies will help reduce Indonesia's transactional deficit.

    Furthermore, October's inflation figures - which is expected to reach 0.5 percent - and estimations of Indonesia's trade and transactional balance in September is also giving the Rupiah the boost it needs, said Rully.