Equity world-The rupiah exchange rate in the inter-bank transactions in Jakarta on Wednesday (07/12/2016) morning rose 44 points to Rp13.305 per US dollar.
“The rupiah rebounded along with the strengthening of the exchange rate in the region against the US dollar. Prices of crude oil that is in the upward trend is still the main driver in addition to the positive sentiment on the domestic markets,” said economist Samuel Sekuritas Rangga Cipta.
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Foreign inflows are still quite large, especially the bond market, according to him, also helped keep sentiment strengthening rupiah against the US dollar until the end of the year.
Despite the strengthening of the rupiah is still open, he said, the influence of global factors such as sentiment the meeting of the Federal Open Market Committee (FOMC) is expected to raise its benchmark interest rate could withstand the rupiah.
Binaartha Securities analyst Reza Priyambada said global risk of rising interest rates the US central bank is expected to appropriate market projections so that the impact is not great on the rupiah in the future.
“Market participants are likely already factoring in the risk of the Fed, the expected rise in interest rates is not too big,” he said.
Although the rupiah is still likely to strengthen, he said, traders should keep a close watch various sentiments were wary of the emergence of a selloff and the US dollar borong action that could impact on reversing the direction rupiah.