Rupiah Closes in the Green on Monday

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  • Ilustrasi mata uang Rupiah. TEMPO/Imam Sukamto

    Ilustrasi mata uang Rupiah. TEMPO/Imam Sukamto

    TEMPO.CO, Jakarta - Rupiah's interbank exchange rate in Jakarta on Monday, July 13, 2015, went up by 42 points to conclude trading at Rp 13,272 per US Dollar - up from its' previous position of Rp 13,314 against the Greenback.

    An economist for Samuel Sekuritas, Rangga Cipta, said that the US Dollar is experiencing some degree of negative correction against the majority of the world's currency, amid increasing optimism that Greece would be able to come up with a new proposal, which would help it secure a bailout. If realized, then riskier currencies will become more attractive among investors.

    "The Rupiah is appreciating against the greenback as investors are becoming more optimistic with regards to Greece's economic predicament," said Rangga.

    In addition to external factors, Rangga added that market players are watching over some positive indicators from the domestic sphere, including Bank Indonesia's (BI) decision with regards to the BI rate, as well as the soon-to-be released economic performance figures.

    "BI is expected to retain its' reference rate at 7.5 percent, and Indonesia is expected to post yet another surplus - albeit only slightly," said Rangga.

    Meanwhile, the Head of Research for Monex Investindo Securities Indonesia, Ariston Tjendra, said that the Rupiah's appreciation is expected to remain within a narrow band because the US Federal Reserve may still decide to raise its' Fund rate, amid the possibility of subsiding turmoil in Greece.

    "The Fed has signalled that it may possibly raise its' Fund rate, the Chinese economy is slowing down - these combination is holding the Rupiah back from appreciating further," said Ariston, before adding that The Fed's Governor, Janet Yellen, has signalled that a fund rate hike will definitely happen sometimes later on in the year.

    Bank Indonesia's middle rate on Monday stood at Rp 13,309 per US Dollar - down from its' previous position at Rp 13,304 per US Dollar.