"The results of a survey indicate slow domestic retail sales have burdened the rupiahs performance today," Reza Priyambada, chief researcher with Trust Securities, said here on Wednesday.
The survey also showed looming pressure on commodity prices in the next three months, with these prices expected to increase, leading to high inflation, he noted.
"BI (Bank Indonesia) is expected to create a policy to keep the inflation rate in check at the meeting of its board of governors tomorrow (Thursday), so this will have a positive impact on the rupiah," he claimed.
On the other hand, the World Banks decision to slash the global economic growth rate allowed the US dollar to remain strong, he said.
Zulfirman Basir, money market analyst with Monex Investindo Futures, explained that the dollar had strengthened and there was a rising number of job opportunities available in the United States.
"The condition will boost the continued improvement of the United States manpower sector to give the market the perception that the US Federal Reserve will continue its stimulus reduction policy," he noted.
According to Bank Indonesias mid exchange rate on Wednesday, the rupiah strengthened against the dollar to Rp11,803 compared with Rp11,806 the previous day.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2014
