Rupiah Regains More Losses In Value

Jakarta, Jan 10 (Antara) - The rupiah regained some of its losses in value against the US dollar in the opening trade on Friday. Rupiah traded at the level of 12,185 per dollar in inter-bank transactions gaining from 12,190 earlier. Chief researcher of Trust Securities Reza Priyambada said the decision of Bank Indonesia to maintain its benchmark interest rate (BI rate) at 7.5 percent gave positive impact on the domestic financial market. "The decision to maintain the BI rate helps create a conducive condition for the real sector that boost investment in the country," Reza said. However, the negative sentiment brought about by the Fed`s decision to trim its financial stimulus curb rupiah from gaining more value. In addition, the European Central Bank, which maintain its low interest policy had weakened the euro against the dollar with negative impact on rupiah. Financial market analyst from Bank Himpunan Saudara, Rully Nova, said rupiah has extended gain thanks to the BI decision to maintain the BI rate. "However, external sentiment especially the US trimming its financial stimulus will continue to shadow the movements of rupiah," Rully said. He said the market players are awaiting implementation of the Fed`s decision on January 18-19.