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Rupiah moves little as investors worry about Fed's inaction
(Kompas/Hendra A
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(Kompas/Hendra A. Setyawan) (Kompas/Hendra A. Setyawan)
(Kompas/Hendra A. Setyawan)
The rupiah exchange rate traded in a number of banks in Jakarta strengthened a fraction to Rp 14,457 from Rp 14,459 per US dollar as the US Federal Reserve left its fund rate the same but opened up the possibility of an increase sometime this year.
'The rupiah moved up slightly against US dollar in response to the Fed decision not to increase the Fed fund rate,' said Samuel Sekuritas economist Rangga Cipta said in Jakarta on Friday.
The Fed delayed the Fed fund rate increase at a meeting on Thursday because the central bank believed that such a move, while the global economy was still moving slowly, could threaten the US's economic recovery.
'The Fed decision created new worries because the majority of its members are hoping for a Fed fund rate increase this year,' said Rangga as reported by Antara news agency.
Meanwhile, Bank Indonesia's decision to maintain the BI rate on Thursday reflected the central bank's wish to maintain domestic financial stability.
Research head of Monex Investindo Futures Ariston Tjendra said the US dollar, though weakened by the Fed's decision, could still strengthen because the Fed was considering moderate tightening measures by the end of this year.
'The dollar weakened against a number of currencies following the Fed's decision to maintain the Fed fund rate. But the possibility of an increase in the rate is still open, judging from a remark made by Fed governor Janet Yallen, who seemed committed to increasing the rate this year,' Ariston said. (bbn)
