Equityworld Futures-Samuel Sekuritas Indonesia estimates that the rupiah exchange rate movements on the US dollar in trading today, Monday (11/21/2016) still depressed.
“Earlier this week the rupiah depreciation pressure could survive, but the presence of BI in the foreign exchange market is expected to reduce the chances of depreciation is too sharp,” said economist Samuel Sekuritas Indonesia Rangga Cipta in his research received today, Monday (21/11/2016).
He suggested the money market is also monitoring the potential for inflation likely to rise.
The increasing trend of inflation, he said, is expected to continue based on the BI survey in the third week of November 2016, so that it can maintain negative sentiment in the bond market and the rupiah.
“Rupiah sentiment itself is still carried by the strengthening dollar and weakening commodity prices in global markets, together with the weakening exchange rate of the other in Asia,” said Rangga.
Economist Samuel Sekuritas Indonesia Rangga Cipta said strengthening of the dollar index which is currently ongoing, influenced by a number of factors.
“The dollar index continued to strengthen, not only due to the heightened expectations of increase in FFR (Fed Funds Rate) targets at the end of the year. But also due to increased expectations on the rate of increase in 2017, fueled by changes in the political map of the United States are estimated at more expansionary fiscal policy, “said Rangga.
On the other hand, he said, the transition of funds from bonds to stocks still look in line with the rise in US Treasury yields and the strengthening trend of the S & P 500 on a US exchange.