Bull Market Prods Rupiah
22 July 2014 00:16 WIB
TEMPO.CO, Jakarta - Investors are optimistic that the market's favored candidate would win the presidential election. The optimism yesterday led to massive buys of rupiah-denominated in assets, helping the currency to close 43 points (0.37 percent) higher at 11,537 per US dollar.
"Confidence over Jokowi's win became investors' main reason to buy rupiah-based assets," Bank Mandiri forex analyst Reny Eka Putri said yesterday.
The rupiah gain is also in line with the movement of regional currencies. Fed Governor Janet Yellen's statement that the US central bank would maintain a low interest rate policy caused greenback assets to lose its appeal temporarily.
"The dollar correction is also the effect of Yellen's testimony," Reny said.
The election euphoria is likely to remain as a main driver to the rupiah appreciation. Reny projected the rupiah to continue its rally, moving in the range of Rp11,500 to Rp,11600 per US dollar.
MEGEL JEKSON