Rupiah Rises to Rp10,855 Following US Fed Announcement

Jakarta (Antara) - The Indonesian rupiah moved up to a positive territory on Thursday afternoon after appreciating to Rp10,855 against the U.S. dollar. The rupiah was strengthened by 469 points to Rp10,855 in inter-bank trading from Rp11,324 against the U.S. dollar after the U.S. central bank decided to continue its quantitative easing policy. "The Fed's surprise decision has created a positive sentiment for the rupiah, which has moved to stable territory and has appreciated," Rully Arya Wisnubroto, a money market analyst from Bank Mandiri, said here on Thursday. He said the market had earlier expected the Fed to cut the stimulus by US$10 billion to US$75 billion a month. Rully however hoped that Bank Indonesia would continue maintaining liquidity in the foreign exchange market in the country so that it does not fluctuate too sharply. "If the rupiah appreciates, it is hoped that the appreciation will not be too high," he stated. He predicted that the exchange rate for the rupiah on Friday would range between Rp10,500 and Rp11,400 against the U.S. dollar. Ruly Nova, a money market observer from Bank Himpunan Saudara, hoped that the government would remain focused on improving the current account so that investors, especially foreign ones could view business conditions in Indonesia positively. Nova viewed the U.S.' decision to continue with its stimulus policy as positive and said it would help in the appreciation of the rupiah. Bank Indonesia's middle exchange rate for the rupiah rose to Rp11,278 on Thursday from a previous Rp11,492 against the U.S. dollar. (*)