REPUBLIKA.CO.ID, JAKARTA – The rupiah traded interbank in Jakarta on Thursday (26/5) moved higher by 17 points to Rp 13 602 compared to the previous position at Rp 13 619 per US dollar.
“The US dollar weakened prevalent in Asian markets, including the rupiah following the return of the rising trend in world crude oil prices. This sentiment was likely to keep strengthening of rupiah in trading today,” said economist Samuel Sekuritas Rangga Cipta in Jakarta on Thursday.
World crude oil prices of WTI crude rose by 0.50 percent to 49.81 dollars per barrel and Brent crude rose 0.62 percent to 50.05 dollars per barrel.
He added that the yields on government bonds (SUN) also fell signifies factor rising world oil prices have a positive effect on the price of securities or in other words the effect on the movement of the rupiah dominate. On the other hand, he said, the government optimism that the remission of tax or tax amnesty could be implemented in July 2016 slightly reduce uncertainty in financial markets.
However, he said that the money market is also still need to be aware of the pressure the weakening rupiah against the US dollar is normally high ahead of a meeting of the Federal Open Market Committee (FOMC) in June 2016.
Futures analyst Platon Niaga Lukman Leong added that sentiment coming from Fitch Ratings affirms the ratings back in Indonesia on investment grade or investment grade psychologically positive impact on the money market, thus improving the investment climate in the country.
However, according to him, the increase in the rupiah is still overshadowed sentiment rise in US interest rates (Fed funds rate) in June, making the gains tend to be limited.