Investors Wait for FOMC Minutes

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  • TEMPO.CO, Jakarta - Speculations that the Fed Rate hike would be delayed held back the US dollar from gaining throughout yesterday's trade. The lack of a significant improvement in US' latest economic data caused investors to believe that The Federal Reserve will not raise interest rates in September.

    The greenback was traded lower against the Indian rupee and the New Zealand dollar. Unfortunately, it still managed to overpower the rupiah; edging up by 3.0 points (0.02 percent) to Rp13,465.5.

    Bank Mandiri's quantitative analyst Reny Eka Putri said investors will wait for the FOMC meeting result before making major decisions. She said that James Bullard's statement of a 50-percent chance the Fed Rate will rise became the reason why the FOMC Meeting will most likely focus on the hike's timeline.

    Internally, Bank Indonesia's growth target cut to 5.2 percent aggravated the rupiah. Throughout the year, growth targets have been corrected several times, reducing the attractiveness of rupiah-denominated investments.

    Ahead of the FOMC Meeting announcement tonight, the rupiah is expected to stay depressed, moving between Rp13,450 and Rp13,550 per US dollar.