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Rupiah rises to Rp 12,137 per dollar at Tuesday's close

The rupiah interbank trade rate in Jakarta on Tuesday closed at Rp 12,137 per US dollar, up by 16 basis points from Rp 12,153 per US dollar in the previous trading

The Jakarta Post
Jakarta
Tue, November 25, 2014

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Rupiah rises to Rp 12,137 per dollar at Tuesday's close

T

he rupiah interbank trade rate in Jakarta on Tuesday closed at Rp 12,137 per US dollar, up by 16 basis points from Rp 12,153 per US dollar in the previous trading.

PT Platon Niaga Berjangka analyst Lukman Leong said that the appreciation of the domestic currency was triggered by the Chinese central bank'€™s decision to reduce its deposit and lending rates earlier this week.

'€œThe move is expected to boost consumption in China, thus helping to strengthen its economy,'€ Lukman said as quoted by Antara news agency.

He said that the policy was expected to increase China'€™s GDP, which would positively impact Indonesia'€™s economy because China was the country'€™s main trade partner.

He said, however, that the domestic economy had to be managed carefully, as the country expected to see increasing inflation rates in the coming months following the government'€™s decision to raise fuel prices.

'€œSo far, market players see that Indonesia'€™s economic fundamentals remain stable and promising. We are hoping that the price of global Brent crude oil remains stable,'€ he added.

In addition, Monex Investindo Futures analyst Zulfirman Basir said that the appreciation of the rupiah against the US dollar remained marginal since market players were worried about the outlook of US monetary policy.

'€œThe players are worried about the prospect of the Federal Reserve'€™s benchmark interest rate next year,'€ Zulfirman said.

Meanwhile, Bank Indonesia data showed that the domestic currency was traded at Rp 12,166 per US dollar by 4 p.m. on Tuesday, down from Rp 12,122 per US dollar in the earlier trade. (nfo)(+++)

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