Rupiah in the Red on Thursday's Close
18 June 2015 18:48 WIB
TEMPO.CO, Jakarta - Rupiah's interbank exchange rate in Jakarta fell slightly by 11 points at the end of Thursday's trading session - down to Rp 13,359 against the greenback compared to its' previous position at Rp 13,348 per US Dollar.
The Head of Research for NH Korindo Securities Indonesia, Reza Priyambada, said in Jakarta on Thursday that the Rupiah is flatlining with a chance of a downtrend, as the Federal Reserve Bank of America has yet to reveal its' exact plan to raise the US Federal Fund rate.
"The Rupiah is already depreciating despite the fact that the Fed has yet to raise its' Fund rate, because such uncertainty has driven investors to hold back from entering riskier markets," said Reza.
That said, there are some supporting factors that has helped to prop up the Rupiah against the greenback - including Indonesia's foreign debt obligations growth which in April 2015, were observed to be stable despite a slight increase to 7,8 percent year-on-year (y-o-y), compared to 7.6 percent y-o-y in March 2015.
"The increase is considered as normal, and as long as the growth of Indonesia's debt could remain within a healthy bracket, the government could definitely fund its' development without incurring risks which endangers Indonesia's macroeconomic stability," said Reza.
Meanwhile, the Head of Research for Monex Investindo Futures, Ariston Tjendra, said that the US Dollar is appreciating ahead of speculations among investors that the US economy will continue to recover in a robust and sustainable rate.
"Furthermore, the Fed has given several indications that it will definitely raise its' Fund rate later on in 2015," said Ariston.
Bank Indonesia's (BI) middle rate on Thursday stands at Rp13,341 - up from Wednesday's position at Rp13,367 per US Dollar.
ANTARANEWS