Rupiah`s exchange rate that is transacted at Jakarta`s interbank on Wednesday morning slightly weakened at about five points to Rp9.910 compared to the previous position at Rp9.905 per US dollar.
"Ahead of the Fed meeting discussing the US financial policy stimulus in the form of easing quantitative (QE), Bank Indonesia will actively keep the Rupiah exchange rate in order to stabilize its fluctuation," said money market observer from Bank Himpunan Saudara Ruly Nova here Wednesday.
Ruly added that the expectations tend to encourage money market players in placing their funds in the form of US dollars and automatically create a pressure for domestic currency.
"The Fed has signaling its readiness to reduce the easing quantitative pace in asset purchasing," said he.
However some investors considered that the US inflation rate that is still under the target possibly complicated The Fed`s step to reduce asset purchases.
Head of Research from Trust Securities, Reza Priyambada adding that Rupiah exchange rate failed to survive in positive area after market players let go a number of Asian currencies along with The Fed`s meeting on Wednesday.
"Market players speculate that The Fed would convey its plans to reduce its bond purchasing program," said Reza.(*)
Editor: Heru Purwanto
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