Rupiah Gains on Fuel Hike
19 November 2014 09:18 WIB
TEMPO.CO, Jakarta – Expectation of a long-term economic recovery following the raised prices of subsidized fuel was responded positively by market participants. In yesterday's currency trade, the rupiah shot up 70 points (0.57 percent) to close at 12,139 per US dollar.
Lukman Leong, an analyst with Platon Niaga Berjangka, said the rupiah being was the only Asian currency that gained significantly against the greenback. "The government's policy to raise subsidized fuel prices yesterday protected the rupiah from the dollar's blows," he told Tempo yesterday.
According to Lukman, investors' expectations of a fiscal policy reform will remain as a catalyst for the rupiah for the next two days. The condition is quite favorable for the domestic currency given how the greenback is strengthening in global markets.
"But to hope for the rupiah to continue gaining until the end of the month—it is unlikely that it would happen," he said.
Today the rupiah is expected to move in the range of 12,100-12,200 per US dollar with a tendency to experience a limited gain.
PDAT | M. AZHAR
