Rupiah extends gain on Wednesday

Jakarta (ANTARA News) - The Indonesian currency rupiah extended gains against the US dollar closing at the level of 13,150 on Wednesday from earlier level of 13,180 per US dollar.

Profit taking curbed the dollar from rising higher ahead of a monetary meeting of the FOMC (Federal Open Market Committee), chief researcher of the NH Korindo Securities Indonesia Reza Priyambada said.

In addition the Fed is expected to be not in a hurry to raise its fund rate, Reza said.

Meanwhile there was positive sentiment from Bank Indonesia, which maintained its benchmark interest rate (BI rate) at 7.5 percent and its commitment of market intervention to protect the national currency.

Bank Indonesia has said it would continue steps to strengthen rupiah stability

"Domestic sentiment is strong enough to prop up rupiah and we hope that the rupiah rising trend would continue," he said.

Chief researcher of Monex Investindo Futures Ariston Tjendra said if the Fed signaled that it would delay raising its fund rate dollar would weaken against the majority of currencies in the world including rupiah.(*)