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Rupiah strengthens to 11,686 per dollar on Monday morning
The rupiah interbank trade rate appreciated slightly by four basis points to Rp 11,686 per US dollar in Jakarta on Monday morning
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The rupiah interbank trade rate appreciated slightly by four basis points to Rp 11,686 per US dollar in Jakarta on Monday morning.
"The rupiah tends to be stagnant in the morning, since market players are waiting for newly released economic data later in the afternoon, such as on inflation and the trade balance," Trust Securities head of research Reza Priyambada said in Jakarta on Monday as quoted by Antara news agency.
He said the rupiah had a good chance of strengthening in the afternoon since the market expected the inflation rate throughout August to be low.
"Based on August's average inflation rate, we estimate that inflation this month will fall around 0.54 percent to 0.88 percent," he said.
Meanwhile, for the trade balance, he said that investors expected it would still suffer a deficit even though the figure would not be significant.
On the other hand, the crisis in Ukraine that continued to escalate still affected global currencies, especially in the emerging markets.
Monex Investindo Futures research head Ariston Tjendra added that the rupiah remained volatile since the US dollar had continued to strengthen following improvements recorded in US economic data.
He said that the US' gross domestic product (GDP) in the second half of the year had risen to 4.2 percent and the sales of houses in July had increased by 3.3 percent, 0.6 percent higher than investors had previously expected.
"External sentiment will still dominate the rupiah," he said. (nfo)
