Jakarta (ANTARA News) - After remaining closed for several days on account of public holidays, markets in Indonesia opened on Thursday, with the rupiah to US dollar exchange rate staying sluggish.

Jakarta interbank transactions fixed the rupiah`s exchange rate against the USD at Rp9,485 per US dollar.

"The rupiah is still in a relatively stable range," Samuel securities markets analyst Lana Soelistianingsih said on Thursday.

She pointed out that the market will react positively once the US central bank announces additional incentives for bolstering its economy at a meeting slated for August 31.

If the extra stimulus is granted during the meeting, it will also help in bringing down the current unemployment rate from 8.3 percent to below 8 percent.

"Based on the minutes of a meeting published by the U.S. Federal Reserve in July, the United States government is expected to approve an additional monetary stimulus in the near future to strengthen the U.S. economic recovery. Thus, the market will welcome the possibility of a third quantitative easing (QE) provision positively," Soelistianingsih added.

However, money market observer Saudara Rully Nova from Bank Himpunan said that Thursday's currency trading transactions are still minimal, and the sentiment in financial markets still guarded.

"Market sentiment is gravitating towards caution, so the frequencies of transactions are still low," he said.

He added that following the expected implementation of a series of speculative programmes aimed at quantitative easing (QE) by the US, should raise certain currencies that are currently at risk.


Editor: Jafar M Sidik
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