TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Rupiah appreciates to 11,991 per dollar at Tuesday's close
The rupiah interbank trade rate appreciated by 41 basis points to Rp 11,991 per US dollar in Tuesdayâs final trading because of market speculation over the possibility of a postponement of a US Federal Reserve rate hike
Change Size
T
he rupiah interbank trade rate appreciated by 41 basis points to Rp 11,991 per US dollar in Tuesday's final trading because of market speculation over the possibility of a postponement of a US Federal Reserve rate hike.
"The rupiah strengthened against the US dollar for the past few days since market players expected that the US central bank would not increase its benchmark interest rate immediately because of a global economic slow-down,' Monex Investindo Futures analyst Ariston Tjendra said, as quoted by Antara news agency.
Ariston predicted that the domestic currency would continue to strengthen in the market until the end of this month since the Fed would conduct a meeting on Oct. 28 and 29 to decide its new policy.
On the other hand, he said that China's gross domestic product (GDP), which rose by 7.3 percent throughout the third quarter of the year, which was 0.1 percent higher than investors had previously predicted, had reinforced the rupiah's positive trend.
"It is important data since China is one of Indonesia's main trade partners,' he added.
He said, however, the appreciation of the domestic currency was limited as every market player was waiting for the formation of President Joko 'Jokowi' Widodo's Cabinet.
In addition, Bank Himpunan Saudara analyst Rully Nova said investors were hoping that the ministerial posts would be filled by people who were professionals and had a lot of knowledge and experience in their respective posts.
"The players are paying attention to the economic team as the team is expected to help boost the country's economy,' Rully said.
Meanwhile, Bank Indonesia data showed that the rupiah was traded at 11,993 per dollar in the closing trading, up from the previous Rp 12,041 per dollar. (nfo)(+++)
