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Rupiah strengthens to 11,960 per dollar at Tuesday's close
The rupiah interbank trade rate appreciated slightly by 11 basis points to Rp 11,960 per US dollar
Change Size
The rupiah interbank trade rate appreciated slightly by 11 basis points to Rp 11,960 per US dollar.
"The rupiah tends to strengthen during the closing session even though it is pretty limited since investors are waiting for the result of the FOMC [Federal Open Market Committee] meeting this week," Bank Himpunan Saudara analyst Rully Nova said on Tuesday as quoted by Antara news agency.
He said that the result of the meeting might impact financial markets in emerging nations, including Indonesia, since it could accelerate the implementation of the US Federal Reserve rate hike plan.
"Increasing the Fed rate will encourage investors to invest in the US," he added.
He said, however, that the depreciation of the rupiah was temporary, due to a lack of positive sentiment in the domestic market.
"The market players want the formation of the new Cabinet to be strong so that the Indonesian economy can enjoy healthy growth," he said.
If president-elect Joko "Jokowi" Widodo installed people whom the market players deemed capable of spurring economic growth, the rupiah would trade between Rp 11,600 per dollar and Rp 11,700 per dollar, he said. (++++)
