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Rupiah weakens to 11,694 per dollar
The rupiah traded among banks in Jakarta depreciated on Thursday afternoon by 25 basis points to Rp 11,694 per US dollar
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The rupiah traded among banks in Jakarta depreciated on Thursday afternoon by 25 basis points to Rp 11,694 per US dollar.
"Since improvement drivers in the domestic market remain marginal, the rupiah is continuing to depreciate. However, its fluctuation is still relatively stable," Bank Himpunan Saudara analyst Rully Nova said as quoted by Antara on Thursday.
Rully added that uncertainty over the increase in the price of subsidized fuel has made the market players go into wait-and-see mode.
"In wait-and-see mode, the players tend to keep their assets and make transactions in US dollars," he said.
Meanwhile, a number of investors are worried that the planned Fed rate hike might be implemented earlier than the market expected following better US economic data.
"The Fed rate hike will have a negative impact on emerging markets," Rully added.
PT Platon Niaga Berjangka analyst Lukman Leong, meanwhile, was hoping for government confirmation of the time frame of the increase in the price of subsidized fuel, so that the rupiah's fluctuation could be more easily predicted.
"Investors are still seeing the domestic market in a positive light at the moment, but the uncertainty over this policy has impacted the fluctuation of the rupiah negatively," Lukman said.
Meanwhile, Bank Indonesia's mid-rate data revealed that the rupiah was trading at Rp 11,682 per US dollar by 4 p.m on Thursday, up from the previous Rp 11,708 per dollar. (nfo)
