Analyst: The Fed's policy influences the stronger IDR

REPUBLIKA.CO.ID, JAKARTA – The rupiah value rose against the US dollar in the closing trade on the Fed saying it would continue relaxed monetary policy, analysts said. The Indonesian currency traded at the level of 12,086 per USD strengthening from the level of 12,173 earlier. 

“Positive sentiment prevailed again in the financial markets of developing nations after the Fed’s new governor Jennet Yellen announced it would maintain low interest rate,” Monex Investindo Futures analyst, Zulfirman Basir, said. 

He said better than expected trade surplus recorded by China in January 2013 also eased the fear of global economic slowdown and boosted the spirit of investors including on the domestic market. Domestically, a series of Indonesian economic data released earlier this month such as Decembers trade surplus, increase in foreign exchange reserves still contributes to the positive sentiment. 

“A number of investors are still wary of the result of the monthly meeting of Bank Indonesia board of governors on Thursday,” he said. 

The central bank, however, is expected to maintain its high benchmark interest rate at 7.5 percent. Meanwhile, the middle rates of Bank Indonesia on Wednesday showed that rupiah appreciated to the level of 12,115 per dollar from 12,174 earlier.