/2014/10/23/1190994839p.jpg)
JAKARTA. The rupiah interbank trade rate in Jakarta on Tuesday morning appreciated by 26 basis points to Rp 12,254 per US dollar from Rp 12,280 per US dollar in the earlier trading.
Samuel Sekuritas economist Rangga Cipta said that the rupiah strengthened in the morning because of positive sentiments in the market following the Central Statistics Agency (BPS)’s announcement on the country’s macroeconomic data.
BPS data showed that the country’s trade balance in October 2014 recorded a US$23.2 million surplus after suffering deficits in the previous months throughout the year.
“Even though the surplus is marginal, it is enough to help strengthen the domestic currency in the market,” Rangga said on Tuesday as quoted by Antara news agency.
He said that year-on-year inflation, which stood at 6.23 percent, had prevented the rupiah from appreciating significantly in the financial market.
He said, however, that the market players had predicted the impact of the fuel-price hike on the inflation rate.
Players, he added, were currently waiting for the US construction market data, which is projected to be better than last month. This may prevent the domestic currency from strengthening in the closing trade.
Separately, PT Platon Niaga Berjangka analyst Lukman Leong said that the domestic currency remained stable in the market because Indonesia’s economic fundamentals were still healthy.
“Investors are hoping that Bank Indonesia is able to maintain the rupiah rate amid economic recovery expectations in the US, which will further strengthen the US dollar in the global market,” Lukman said.
