Liputan6.com, Jakarta The United States Central Bank (The Fed) has given a positive signal showing its interest to slow down the need to increase its interest rate.
This means, with the Fed increasing the interest rate in a gradual manner instead of a hasty one, Asian countries currency may be strengthened after being subjugated for a number of days by the power US Dollar.
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The US Dollar finally fell down to the lowest point after being at one of the highest for the past 20 months shortly after the Fed announced its decision last week.
Bloomberg Foreign Value Data on Monday (23/3/2015) reported rupiah exchange rate to have been strengthened by 0.47% which positioned it to the level of Rp 13.075 per US$ 1.
Rupiah exchange rate has already been strengthened in the market to the level of Rp 12.123 per US $ 1 before making further decline.
Up until this afternoon, rupiah exchange rate continues to fluctuate in a positive trend at the rate of Rp 13.045 to 13.087 per US$ 1. Despite the fact that it has gone stronger than before, it is still stuck at the level or zone of Rp 13.000 per US $ 1.
Meanwhile, the reference code from the Jakarta Interbank Spot Dollar Rate (JISDOR) shows that rupiah only improves by 1 point, that it to the level of Rp 13.076 from Rp 13.075 per US $ 1 in last week’s market.
The Fed's Governor, Janet Yellen said, the United States Central Bank will continue to be accommodative even after it decides to increase the interest rate.
"US Dollar continues to grow in a positive trend, however I believe that it will not increase drastically for the time being. The fundamentals in Asia are quite strong at the moment, it can surely strive," Canadian Imperial Bank of Commerce Strategy Expert in Hong Kong, Patrick Bennet explained. (Akp/Ein)