"Rupiah is under pressure but it would help curb imports. However, external uncertainty factor could jolt the currency beyond expectation," Lana, an analyst said.Jakarta (ANTARA News) - The Indonesian currency rupiah gained 34 points against the US dollar on Thursday morning on Bank Indonesia`s move to protect the currency.
The rupiah traded at 9,585 to the dollar in inter-bank trade strengthening from the level of 9,619 earlier.
Samuel Sekuritas`s analyst Lana Soelistianingsih said here Thursday tht the central bank will still follow the rupiah movements preventing it from falling too deep.
"Rupiah is under pressure but it would help curb imports. However, external uncertainty factor could jolt the currency beyond expectation," Lana said.
"Investors would not respond much to policy to be issued by Bank Indonesia today as they are more focused on external factors," she added.
The Indonesian central bank is expected to announce a decision on its key rate on Thursday in a monthly meeting of its leaders.
Observes, however , have predicted that the central bank would not change its key rate of 5.75 percent.
Trust Securities` analyst Reza Priyambada attributed the rupiah strengthening to market optimism with the third quantitative easing measure by the Fed.
Further rise of the rupiah , however, would be blocked by negative sentiment with the IMF revising down its global economic growth .(*)
Editor: Heru Purwanto
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