"Currently, domestic sentiment is the factor propping up rupiah. The government plans to announce a deregulation measure removing restriction on investment and economic growth. The policy is expected to draw foreign investment back to Indonesia," financial market observer from Bank Himpunan Saudara, Rully Nova, said .
He said the policy could be a positive mid and long term sentiment, especially as the government plans to allow foreigners to open dollar account in Indonesia.
"If it is made a reality it will strengthen rupiah in the coming month," he said.
For the time being some of the market players forget the sentiment from the plan of the Fed to raise its fund rate, he said.
Too long being in uncertainty had raised doubt among some of the the market player that the Fed would finally raise its fund rate in September, he said.
Financial market analyst from BRI Syariah, Rahmat wibisono, said the countrys economic fundamentals still remain goods contributing to rupiah gaining strength.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2015
