The decision of Bank Indonesia to maintain its benchmark interest rate (BI rate) at 7.5 percent was one of the contributors to strengthening rupiah, financial market analyst from Bank Mandiri Rully Arya Wisnubroto said.
"The decision of the central bank was in line with the market prediction," Rully said, adding the interest rate is considered enough to control inflation ahead of the Islamic fasting month and Idul Fitri.
Rully said a number of sentiment that could curb rupiah from strengthening further include political situation ahead of the presidential election in July 9 and the Ukraine crisis.
"As for the political situation in the country, investors tend to wait and see and the crisis in Ukraine is feared to trigger market instability," he said.(*)
Editor: Heru Purwanto
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