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Rupiah appreciates to 11,670 per dollar at close
The rupiah interbank trade rate appreciated by 11 basis points to Rp 11,670 per US dollar in Jakarta on Wednesday afternoon
Change Size
The rupiah interbank trade rate appreciated by 11 basis points to Rp 11,670 per US dollar in Jakarta on Wednesday afternoon.
PT Platon Niaga Berjangka finance market analyst Lukman Leong said the market players were expecting the country's economic growth to continue to expand following the government's plan to increase the price of subsidized fuel.
"The players are responding to the domestic fundamental economy positively," Lukman said in Jakarta on Wednesday as quoted by Antara news agency.
He said the subsidized fuel price increase would have a positive impact on the nation's current account.
"This step will be appreciated by market players in the long run. The rupiah will be traded at between Rp 11,500 per dollar and Rp 11,700 per dollar," he said.
However, he said the strengthening of the rupiah was still limited due to a lack of positive sentiment from the external market.
"Globally, the US dollar is continuing its domination in the market following market anticipation on the US Federal Reserve rate hike plan, which could be sooner than expected," he added.
Meanwhile, Bank Indonesia's mid-rate data showed the rupiah had traded at Rp 11,708 per dollar, up from the previous Rp 11,715 per dollar. (nfo)
