"The rupiah is still showing a trend of appreciation against the dollar at a range of Rp11,500. The rupiah strengthened, particularly as political tensions between Ukraine and Russia have gradually eased," research chief of Monex Investindo Futures, Ariston Tjendra, said here on Wednesday.
The news sent a positive signal to the money market, with investors showing less interest in "safe haven" assets, he noted.
"On the other hand, investors are hunting for risky assets such as the rupiah," he said.
Psychologically, domestic investors have responded positively to a statement by Bank Indonesia that the countrys balance of trade will recover following high demand from advanced countries for mining products, he remarked.
Meanwhile, Bank Mandiris money market analyst, Rully Arya Wisnubroto, said in the short and medium terms the rupiah will move slowly in the domestic money market, as investors will adopt a wait and watch approach in anticipation of the results of the legislative and presidential elections this year.
"The money market is observing issues related to the elections," he noted.
According to Bank Indonesias mid rate on Wednesday, March 5, the rupiah strengthened to Rp11,580 per dollar from Tuesdays close of Rp11,647 per dollar. (*)
Editor: Heru Purwanto
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