"Technically, the rupiah`s movement is critical because of the notion that the central bank, Bank Indonesia (BI), is not controlling the currency`s movement," Samuel Securities market observer Lana Soelistianingsih said here on Wednesday.
The rupiah dropped by 130 points to Rp9,790 per dollar, from Tuesday`s close of Rp9,660 per dollar.
Soelistianingsih noted that the pressure from technical factors was likely to rise further, but "the possibility of rupiah returning to a stable position does exist".
"The figures from the treasury reserve of Indonesia in 2012 are reported to be US$112.8 billion, up 2.41 percent from the previous year`s US$110.1 billion. They are expected to boost market sentiments," she pointed out.
"The increase in treasury reserve is likely to strengthen the rupiah again," Soelistianingsih said.
Meanwhile, Research Chairman of Monex Investindo Future Ariston Tjendra said the markets were awaiting the outcome of the European Central Bank (ECB) conference on Thursday (January 10).
"Every move of the ECB policymakers with regard to interest rate cuts has the potential to disturb markets around the world," he said.
"Moreover, the rupiah will also be affected by the rumours on the downgrade of France`s credit rating," Tjendra added.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
