TEMPO.CO, Jakarta - The growing domestic demand for US dollars coupled with the greenback's stronghold in global markets pushed the rupiah down. In yesterday's money market transactions, the rupiah was corrected by 10 points (0.08 percent) to close at 12,205 per US dollar.
Heru Irvansyah, an economist with BNI Securities, said the greenback strengthened against Asian currencies triggered America's economic recovery. "Meanwhile, there is an increasing corporate dollar demand to pay debts maturing at the end of the year."
According to Bank Indonesia, the private sector's maturing debt totals at US$45 billion.
Given the looming negative sentiment from the subsidized fuel hike plan, the rupiah is expected to keep fluctuating for the time being. Under this condition, the market will tend to hoard safe havens over fear of an inflation surge, followed by capital outflows, when fuel prices are raised.
Today the rupiah is projected to move between 12,180 and 12,220 per US dollar with a tendency to weaken. "However, the smooth flow of liquidity in emerging markets—the effect of Japan's stimulus policy—is estimated to limit the rupiah correction," said Heru.
PDAT | M. AZHAR