Rupiah Recovers Slightly on Friday Morning

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  • TEMPO.CO, Jakarta - Rupiah's interbank exchange rate in Jakarta went slightly up by eight points to begin trading at Rp13,392 per US Dollar on Friday morning - up from its' previous trading position at Rp13,400 against the greenback.

    "Bank Indonesia's (BI) intervention is one of the factors that drives the Rupiah back into the green," said an analyst for Platon Niaga Berjangka, Lukman Leong, who added that the government's efforts to increase the absorption of the State Budget, has also helped the Rupiah regain some of its' losses.

    "A better domestic infrastructure could help increase consumption and attract investements, which will help sustain Indonesia's economic growth," said Lukman.

    That said, the Rupiah is expected to only recover slightly because there are still indications that the Federal Reserve Bank of America might decide to raise its' fund rate, which causes concern among local investors.

    "The uncertainty is holding investors back from returning to riskier currencies - and riskier currencies are at risk of depreciating further if the Fed decides to raise its' fund rate," said Lukman.

    An economist for Samuel Sekuritas, Rangga Cipta, added that the Rupiah is gaining some ground as many publicly traded entities in the US stock market are performing below market expectations.

    ANTARA