High Demand for JPY Holds Rupiah from Rebounding

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  • REUTERS/Supri

    REUTERS/Supri

    TEMPO.CO, Jakarta - The rupiah is expected to manage to rebound in the currency market today despite within a limited range. The rebound is likely to be held back by the high demand for Japanese yen in the currency market.

    Binaartha Parama Sekuritas analyst Reza Priyambada said the yen is climbing after selling pressures in the stock markets subsided. This is the after effect of a deal between the US congress and government to reduce the US dollar volatility, which allows yen demand to rise.

    "As a result, the rupiah weakens over the yen demand," he said in a written statement, Tuesday, Feb. 13.

    Reza said the deal between the US' congress and government has no positive effect on the rupiah. The greenback also noted a downturn as market players are selling to gain profit from the dollar's previous appreciation.

    Reza estimated the rupiah to move between Rp13,668 and Rp13,642 per US dollar today.

    From Indonesia, there have been no positive sentiments that can crank up the rupiah's position. "Nevertheless, stay alert for sentiments that can trigger another rupiah correction," he said.

    DIAS PRASONGKO