Samuel Sekuritass economist Rangga Cipta noted that the rise in rupiahs value was caused by the Federal Reserves uncertainty about raising interest rates.
"Fed chairwoman Janet Yellen is pleased with the recent economic growth except inflation. The desire to increase the rates still exists, so a hike can be confirmed within the next two meetings," he added.
According to him, if the economy continues to strengthen, as the Fed anticipates, the central bank will consider increasing the Federal funds rate.
Janet Yellens statement has boosted the foreign currency risk, although it is still overshadowed by Chinas manufacturing gauge in the middle of a global demand uncertainty, Cipta remarked.
Mandiri Sekuritass economist Aldian Taloputra estimated that the Fed rate will see a rise only in the fourth quarter of 2015 because the US inflation has slowed down following a decline in global oil prices.
"Oil prices have fallen sharply, leading to a drop in the prices of goods in the US and the slowing of inflation. The Fed is waiting for the inflation to reach its target of 2 percent to lift the rate," Taloputra added.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2015
