Rupiah Faces Weekend Correction
Jakarta-The United States' improving economic indices amid minimum positive sentiments in the domestic market is putting the rupiah on a downtrend. In yesterday's currency transaction, the rupiah extended its three-day correction by depreciating 35 points (0.31 percent) to Rp11.447 per US dollar.
Money market analyst from Bank Mandiri, Reny Eka Putri, said the rupiah tends to move downward in the last few days, unable to keep up with the US dollar's superiority in the market. "America's improving economic data prompted investors to divert their portfolios to the US dollar," she said.
Investors are also overshadowed by the negative sentiment stemming from last week's Federal Open Market Committee (FOMC) meeting that resulted in the Fed's decision to continue with its stimulus cutback until the end of this year, as well as the possibility of raising interest rates by 2015.
The rupiah is also lacking positive sentiments from the domestic economy, leading investors to wait for next week's inflation and trade balance announcements. "There is even pressure from the high domestic demand for the US dollar, triggered by increasing corporate demand nearing the end of this month." Reny said.
Reny said that Singapore's non-deliverable forward's (NDF) switch to using the Jakarta Interbank Dollar Spot Rate (Jisdor)—compiled by Bank Indonesia (BI) as a reference for transaction—has yet to provide short term positive effects.
Singapore's financial market yesterday discontinued the use of the IDRVWAP as a benchmark in the NDF market, switching to the Jisdor. Economists are expecting positive changes for the rupiah, maintaining its volatility.
"By the end of the week, the rupiah is expected to weaken in the range of Rp11,360 to Rp11,480 per US dollar," Reny projected. (rep05)
LAINNYA
Tulis Komentar