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Rupiah strengthens slightly to Rp 13,178
The rupiah strengthened slightly in morning interbank trade on Tuesday to Rp 13,178 per US dollar from Rp 13,187 per dollar in previous trade
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he rupiah strengthened slightly in morning interbank trade on Tuesday to Rp 13,178 per US dollar from Rp 13,187 per dollar in previous trade.
Samuel Sekuritas economist Rangga Cipta said internal conditions had not been enough to support the rupiah to strengthen to a higher level amid the lack of positive sentiment.
'The inflation rate to be announced early next week is projected to rise, while there has not been signs of improvement in the disbursement of the state budget in the first quarter as it is far from the target to prevent sluggishness in the domestic economy,' Rangga said as quoted by Antara news agency.
Amid such an unfavorable condition, he said, the US dollar had the potential to strengthen further against the rupiah. Intervention by Bank Indonesia is considered to be the only way to help maintain stability of the domestic currency.
The head of the research unit of NH Korindo Securities Indonesia, Reza Priyambada, shared Rangga's opinion, saying that statements by the US Federal Reserve governor Janet Yellen, who expressed her intention to raise the Fed's benchmark interest rate later this year, would continue supporting the dollar.
He further said that the absence of agreements on Greece's debt repayment and response to speeches by ECB president Mario Draghi, who indicated sluggishness in the eurozone, had negatively affected the euro, thereby giving way for the strengthening of the US dollar against the majority of global currencies.
'At present, the rupiah is still fluctuating, but investors have to be aware of any pullback. Existing sentiments are not strong enough to push the rupiah to a higher level,' he added. (hhr)(++++)
