There is possibility of the rupiah strengthening as market players still tend to buy risky currencies including rupiah, Ruly said.Jakarta (ANTARA News) - The Indonesian currency rupiah traded at 9,500 per US dollar in inter-bank transaction this morning or unchanged from last week`s close.
"The euphoria of quantitative easing (by The Fed) is still felt but not as strong as last weekend," market observer Ruly Nova of Bank Himpunan Saudara said here on Monday.
There is possibility of the rupiah strengthening as market players still tend to buy risky currencies including rupiah, Ruly said.
"The Fed`s monetary policy of quantitative easing last week still puts pressure on the dollar," he said.
Positive sentiments for risky currencies has also come from the decision of the German Constitutional Court endorsing a US$500 billion bailout of debt-crisis-hit countries in the euro zone, he said.
He predicted the liquidity of money market will remain high until the end of this year.
Technically, the rupiah is expected to hover around 9,400 per dollar, he said.
"Rupiah will be in a rising trend against the US dollar to follow the external factors ," he added.
Monex Investindo Futures analyst Ariston Tjendra said market players believed that the Fed`s decision and the plan of the European Central Bank to cut loan cost to be paid by ailing economies in the euro block would strengthen the rupiah value.
"Euro strengthening could give positive sentiments for rupiah against the US dollar," he said.
"The quantitative easing would keep pressure on the US dollar as it is tantamount to printing more dollar bills," he said
The decisions of the Fed and the ECB are determinant and important which might sustain risk sentiment until next year, he added. (*)
Editor: Heru Purwanto
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