"The rupiah has weakened, but still moves within a stable range thanks to the market`s positive response to Bank Indonesia`s decision to raise its key rate last week (Sept 12)," Trust Securities research chief Reza Priyambada said on Monday.
The market saw the central bank`s decision to raise its key rate by 25 basis points to 7.25 percent as having curbed negative sentiment to global financing, he said.
On the other hand, the US dollar`s weakening against the Japanese yen might offset negative sentiment triggered by BI`s downward revision of economic growth to 5.5-5.9 percent from the earlier 5.8-6.2 percent, he said.
Zulfirman Basir, analyst of Monex Investindo Futures, said the rupiah weakened on Monday as investors were waiting for the results of the US Federal Reserves` meeting on Sept 17-18.
Further, global sentiment, which tended to improve after Lawrence Summers withdrew his nomination to become the Fed chairman, might send a positive signal to the money market, he said.
The market had earlier shown concerns that Summers would speed reductions in the Fed`s financial stimulus.
According to Bank Indonesia`s middle rate on Monday, the rupiah weakened at Rp11,423 per dollar, compared to the previous Rp11,395 per dollar. (*)
Editor: Heru Purwanto
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