Rupiah Recovers by 26 Points on Tuesday Start

TEMPO.CO, Jakarta - Rupiah's interbank exchange rate went up by 26 points at the start of Tuesday's trading session - up to Rp12,254 per United States (US) Dollar from its previous position at Rp12,280 per US Dollar.

An analyst from Samuel Sekuritas, Rangga Cipta, said on Tuesday that the Rupiah still has some room to move upwards after Indonesia's economic performance figures indicates positive growth - especially in light of Indonesia's trade balance for the month of October, which recorded a surplus of US$23,2 million.

"Although the reactions are rather muted, the figures provided enough boost to sustain its appreciation against the US Dollar," said Rangga, as quoted by Antara News.

According to Rangga, November's year-on-year inflation figure - which stands at 6.23 percent - is among the factors that limit the further uptrend of Rupiah. That said, such inflation figure - which is partially driven by the recent cuts to fuel subsidies by the government - has been anticipated by the government.

Rangga added that market players are awaiting the release of the US construction figure which is expected to recover, which will put some pressure on the Rupiah.

An analyst from Platon Niaga Berjangka, Lukman Leong, said that Rupiah's movements remains relatively stable as it is supported by Indonesia's positive economic figure.

"Investors are hoping that Bank Indonesia (BI) can aim its policies to maintain the stability of the Rupiah, especially in light of the recovery of the US economy," said Lukman.

ANTARA | ZUBI MAHROFI