Encouraged positive sentiment, stronger rupiah 50 Points

Jakarta - The exchange rate of rupiah in the inter-bank spot market Jakarta, Thursday morning, a stronger limaq points Rp10.900/11.050 per U.S. dollar compared to the previous closing day Rp10.950/11.050, because positive sentiment is still supporting the U.S. currency. Money market observer, Farial Anwar, in Jakarta, on Thursday said, the key factors that encourage stronger rupiah due to decline in the value of the U.S. dollar in global markets, after the Federal Reserve (the Fed) lowering interest rates almost a tribe of zero percent. The interest rate reductions The Fed is causing almost all major currencies appreciated, especially the euro against the U.S. dollar, he said.

Euro climbed to 1.4404 dollars from 1.4018 dollars late Tuesday. Increase the strong euro against the greenback since the currency was launched in January 1999. Euro also appreciated against the yen to be 126.02 yen from 124.74 yen. Dollar against the Japanese currency, trading at 87.95 yen from 88.98 yen previously. "The Fed policy lower the interest rates trigger ethnic market to buy another currency that result in negative impact on the movement of U.S. dollars," he said. He said that the release of U.S. dollars by the agency showed skepticism market flood the U.S. central bank can manage the risks facing. The amount of the increase in euro is also supported by the European central bank (ECB) which will maintain interest rates at the tribe 2.5 percent, he said.

According to Farial, rupiah likely to rise again, because the needs of the U.S. dollar towards the end of the year starts to wane. U.S. dollars by the market has anticipated since early this month and start decreased near the end of this month. Rupiah at the end of this week is estimated to be still below the levels ranged Rp11.000 per U.S. dollar, which indicates the market is still positive on the Indonesian currency, he said