Samuel Securities analyst Lana Soelistianingsih said here on Monday the rupiah strengthened because of support from Bank Indonesia (BI).
Rupiah traded at Rp9,620 per dollar, strengthening from its initial level of Rp9,665.
"Although the rupiah is still vulnerable to declines, it can remain within the range of Rp9,650-Rp9,670 per dollar with support from BI," she noted.
Lana stated that the rupiah could weaken on concerns of the rising trade deficit during January-November 2012, which stood at US$1.3 billion.
"Due to this trade balance deficit, the supply of US dollars decreases. However, at the same time, the demand for dollar increases on account of debt obligations due at the end of the quarter," she explained.
Meanwhile, Trust Securities analyst Reza Priyambada said positive sentiments from the European economic data and the tightened monetary policy of the European Central Bank (ECB) made the euro gain against the dollar.
"The appreciation is expected to boost Asian currencies, including the rupiah," he added.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
