TEMPO.CO, Jakarta - Binaartha Sekuritas analyst Reza Priyambada predicts the rupiah to weaken following reports of the US dollar gain. He projects the garuda to move between a support level of Rp13,355 and a resistance level of Rp13,325.
Read: Rupiah Climbs on Forex Reserves Increase
Reza said there is very little room for the rupiah to appreciate given the current dollar movement, and the increasing demand for the greenbuck after last weeks' depreciation which lead to bulk buying.
Last week, the rupiah fell as market players bought US dollars based on observations of America's economic data—overlooking sentiments of a Fed Rate hike.
Read: Rupiah Gains on Dollar ahead of Eid
Reza added that signs of an inflation hike in the states may strengthen projections that the Fed will raise interest rates sooner than expected. This will increase the US Treasury yields and eventually hammering the rupiah down.
VINDRY FLORENTIN
