Interest Rate of 7D-RR Fixed 4.25 Percent, Rupiah Rate Predicted Stronger
By : Abraham Sihombing And Aldo Bella Putra | Friday, November 17 2017 - 16:00 IWST
INDUSTRY.co.id - Jakarta - The rupiah exchange rate against the US dollar is expected to strengthen after the Board of Governors Meeting of Bank Indonesia (RDG-BI) decided to hold the BI Rate 7-Day Reverse Repo (7D-RR) at 4.25%.
"The rupiah is currently moving mixed. The result of RDG-BI that maintains the 7D-RR interest rate is expected to be a positive sentiment that can push back the strengthening of the rupiah exchange rate," said Reza Priyambada, an analyst at PT Binaartha Sekuritas, in Jakarta on Friday (17/11/2017).
Reza said the rupiah against the US dollar is estimated to move in the range 13,553-13,522. If the rupiah exchange rate weakens, then market participants will not respond by opening up further weakening opportunities because the depreciation is only a temporary sentiment.
Nevertheless, according to Reza, rupiah's robustness to continue to strengthen seems to have to be tested again in line with the possibility of strengthening US dollar exchange rate against various major currencies of the world.
Reza said, the movement of the rupiah exchange rate during yesterday's trade is still not going according to the scenario. The reason, although closing strengthened to the level of 13,538 per US dollar, but the rupiah still looks likely to weaken. (Abraham Sihombing)