Analyst of Platon Niaga Berjangka Lukman Leong said the rate of rupiah against the US dollar tended to get stronger ahead of the meeting of Bank Indonesias board of governors.
"The currency market players hope that Bank Indonesia (central bank) will issue a policy that can maintain the inflation rate amid an increasing trend as a result of the impacts of the recent fuel price hike," he said.
At this time, the BI rate reamins at the level of 7.75 percent but the space remains available for the central bank to control the inflation rate in the future, he said.
Bank Indonesia was still active to intervene the currency market to maintain the exchange rate of rupiah against the greenback.
Rully Nova, Bank Himpunan Saudaras currency market analyst, has said on Wednesday that the fall of Indonesias US dollar reserves from 111.97 billion to 111.14 billion dollar at the end of November 2014 was also 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.
(Reported by Zubi Mahrofi/Uu.R013/O001)
Editor: Priyambodo RH
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