Rupiah currenct Strengthening Highest amount in Asia, today

Rupiah currency

Rupiah currenct Strengthening Highest amount in Asia, today

TEMPO.CO, Jakarta - The positive sentiment of the meeting of the Federal Economic Committee (FOMC Meeting) and the continued intervention by Bank Indonesia's rupiah currency market bounce back sharply. At the close of the financial markets Thursday, the rupiah shot 105 points (0.83 percent) to a level of 12 563 per US dollar.

Rupiah rose higher than most other Asian currencies. The Indian rupee rose 0.66 percent to 63.20 per dollar, the ringgit also gained 0.66 percent to 3.46 per US dollar, and the baht only shifted 0.05 percent to 32.90 per dollar. While the yen, yuan, and won still continue weakening against the US dollar.

Analyst of PT Monex Investindo Futures, Albertus Christian, said the strengthening of the rupiah was triggered by a weaker dollar in the global market. Dollar under pressure after US central bank governor (the Fed) Janet Yellen said it still will keep interest rates low. "As a result, the dollar again depressed and the rupiah strengthened."

Although US economic data continued to show improvement, but the Fed still see that the consumer price index is still well below the target of 2 percent. Currently, the rate of inflation in the US ranges from 1.3 percent year-to-date. Low inflation makes the Fed had no reason to accelerate the era of monetary tightening.

According to Albert, the rupiah rose most sharply since the money market is still maintained by the central bank. So far, the euphoria is still ongoing intervention. Since December 15, 2014, the central bank has spent about US $ 500 million to stabilize the rupiah. "The liquidity injection of whom to buy dollars in the money market and government securities in the secondary market."

He expects the central bank will intervene in order rupiah remained stable at around 12,500 per dollar. However, the trend of dollar weakness will open the BI opportunity to finish his intervention.