Analyst of PT Platon Niaga Berjangka Lukman Leong stated that the rupiah exchange rate again moved downward ahead of the release of Indonesian economic data for the August period by the National Statistics Agency (BPS).
"Investors are adopting a wait and watch approach in anticipation of the release of the data tomorrow, and in the midst of this situation, investors tend to sell some of their rupiah assets. It is hoped that inflation stays low to support the value of the domestic exchange rate," he affirmed.
He also expressed hope that other domestic economic data to be released in the middle of September would show improvement in the export-import performance.
With regard to the external factors, he said that the US dollar was still supported by non-farm payrolls, which are increasing, adding that data is expected to be released at the end of this week. He said if the non-farm payroll data is increasing, the US dollar has the potential to further strengthen against the rupiah.
However, he stated that the US dollar is still vulnerable to correction due to a suggestion put forth by Fed Atlanta President Dennis Lockhart that the Fed is considering to hike its interest rate in the midst of the current global economic slowdown.
Chief Researcher of NH Korindo Securities Indonesia Reza Priyambada noted that the rupiah exchange rate moved to consolidate ahead of the release of domestic economic data on Tuesday.
"The rupiah exchange rate may further strengthen against the US dollar if the economic data showed positive results, including low inflation," he pointed out.
Bank Indonesias rupiah middle rate was down to Rp14,027 against the US dollar on Monday from Rp14,011 the day before.(*)
Editor: Heru Purwanto
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