"The rupiah remains stable in the wake of the various developments taking place in the financial markets," Trust Securities Head of Research Reza Priyambada said on Monday.
According to Priyambada, the positive sentiment was a result of the U.S. Federal Reserve (Fed) Deputy Governor Janet Yellens statement regarding the countrys stimulus program.
However, he added that the high balance of payment deficit had also allowed the rupiah to strengthen.
But, Priyambada was also optimistic about the trend of the U.S. dollar weakening against major foreign currencies following the Feds stimulus continuity. He added that this could push the rupiah up further and strengthen it in the near future.
Meanwhile, Bank Mandiris Financial Market Analyst Rully Arya Wisnubroto noted that the rupiah still had a chance to strengthen following the intervention by Bank Indonesia as the central bank wanted to maintain stability in the domestic currency.
Wisnubroto added that the United States recovering economic growth would also push the Fed to lessen its stimulus, which would allow the rupiah to grow stronger.
"The continuity of the Feds financial stimulus will be a positive development for the rupiah," he said.
(A060/INE/o001)
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