Dollars to Rupiah and positive European sentiments factor

Jan. 14, 2013 - PRLog -- Rupiah swapped at 9,645 to the US dollar nowadays, strengthening from its initial level of 9,665. Indonesian banks trade it between IDR 9.503 up to 9.975 buying rate to USD, according to http://dollar.web.id  - an online table pool of rupiah’s exchange rate from local banks.

Growing concerns over high inflationary pressures and the ability of local companies to pay their foreign debts as the result of the sharp depreciation of rupiah against the US dollar would likely create negative sentiment in trading activities on the local forex market.

Prices of Indonesia’s primary export products commodities, such as mining products and crude palm oil - are likely to recover this year on the back of higher demand referable a better economic outlook of the U.S.A. and China.

The central bank (Bank Indonesia) has said that it has formulated measures to halt a further drop in the rupiah’s rate.

"The Indonesian currency went strong because of the steps taken by Bank Indonesia (BI) to control the financial market. The other factor is positive sentiments from Europe," said Reza Priyambada, an analyst at Trust Securities, http://dollar.web.id on Monday.

He said the Bank Indonesia will ensure that the exchange rate is at the right value. It is about controlling the market, not financial regulations.

"Whilst the BI has not provided details of the steps, it will control the market and strengthen the Indonesian currency soon," he said.