Rupiah Trades at Rp12,107 at Tuesday's Close  

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  • TEMPO.CO, Jakarta - The rupiah interbank exchange rate went slightly up by one point to trade at Rp12,107 per United States (US) dollar at the end of Tuesday's trading session, up from its previous position at Rp12,108 per US dollar. 

    The heead of research at Monex Investindo Futures, Ariston Tjendra, said the rupiah tended to fluctuate amid rife rumors that the government was about to realise its commitment to cutting fuel subsidies.

    "As the evening draws nearer, the rupiah is back in the green zone, although the gain is very small," Ariston said.

    He added that the rupiah's limited uptrend echoed the cautious stance taken by investors, who were anticipating the release of Indonesia's Gross Domestic Product (GDP) figure, which is due to be announced on November 5.

    Ariston also said the rupiah's uptrend remained limited by speculations among market players, many of whom predicted that the soon-to-be released US unemployment figures will be better than its previous position.

    "The conditions give rise to speculations that the Federal Reserve Bank of America might raise its core interest rates sooner that initially expected," said Ariston, who also predicted that if the latest unemployment figures match market expectations, then there is a real chance that the US dollar may breach new heights, which will drive investors to return towards US-denominated assets.

    Bank Indonesia's middle rate on Tuesday stood at Rp12,130 per US dollar, down from its previous position at Rp12,105 per US dollar.