"The government`s policy to provide business agents with incentives is expected to have a significant impact on increasing economic activities," CSA Research Institute senior analyst Reza Priyambada stated here on Friday.
On the other hand, the rupiah`s appreciation was related to the technical factor in which some market agents capitalized on the dollar`s high exchange rate for profit taking.
However, he forecast the rupiah`s appreciation to be limited due to market agents` strong expectation of the Fed Rate hike.
"The rupiah`s appreciation is still relatively fragile following a meeting of the Federal Open Market Committee (FOMC) last September that signaled another hike in the Fed rate," he pointed out.
Monex Investondo Futures chief researcher Ariston Tjendra stated that the result of the Fed meeting, which signaled a hawkish tone about the interest rate hike, will still cast a shadow on the rupiah`s exchange rate.
"The movement of the US dollar remains solid following the FOMC meeting that signaled a hawkish tone about the Fed rate hike," he remarked.
The rupiah traded at Rp15,213 per dollar in the previous close.
Reporting by Zubi Mahrofi
Editing by Suharto
Reporter: Antara
Editor: Andi Abdussalam
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