"The rupiah`s appreciation is inseparable from Bank Indonesia`s intervention in the domestic money market amid negative sentiment over the currency," analyst Reny Eka Putri noted.Jakarta (ANTARA News) - The rupiah gained 65 points against the dollar on Friday evening following intervention by Bank Indonesia in the money market.
The Indonesian currency traded at Rp11,580 per dollar in the Jakarta interbank spot market on Friday evening against Rp11,645 per dollar one day earlier.
"The rupiah`s appreciation is inseparable from Bank Indonesia`s intervention in the domestic money market amid negative sentiment over the currency," Bank Mandiri money market analyst Reny Eka Putri noted.
Reny said Indonesia`s rating, which rose to 38 from its earlier 50th position in the world economic forum, has shored up the positive sentiment for the rupiah.
However, the rupiah remains under pressure following the Fed`s plan to cut its monetary stimulus, she said.
Also, that the International Monetary Fund (IMF) revised downward its economic growth forecast for Indonesia to 5.3 percent from more than 6 percent has added to negative sentiment to the rupiah, she said.
Meanwhile, Monex Investindo Futures` research chief Ariston Tjendra predicted the rupiah`s strengthening would be temporary amid concerns over a looming global oil price hike as a result of the US plan to launch a military attack on Syria.
"The oil price will negatively affect trade, current accounts and the budget deficit," he said.
The currency traded at 11,655 in interbank transactions at the opening on Friday, from 11,645 per dollar earlier.(*)
Editor: Heru Purwanto
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