Head of Woori Korindo Securities Indonesias research division Reza Priyambada said Bank Indonesia attempted to protect rupiah by intervening the currency market.
The currency market players, he said, expected that the Federal Reserves rate could be increased more quickly, making the US dollar was more interesting for the foreign currency market players.
"The central banks (BI) intervention and positive sentiments remain needed to enable rupiah to regain its value," he said adding that the US dollars exchange rate against rupiah tends to get strengthened as a result of the Feds increased rate.
Meanwhile, Rully Nova, Bank Himpunan Saudaras currency market analyst, said the fall of Indonesias US dollar reserves from 111.97 billion to 111.14 billion dollar at the end of November 2014 was one of the negative sentiments for rupiah.
The governments decision to increase the subsidized fuel prices that has triggered higher inflation rate has also shadowed the rupiahs value in the future, he said.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2014
