Rupiah Successfully Strengthens to Level 8.960

Jakarta - The decline in interest rates BI Rate by 50 basis points by Bank Indonesia could make a shock market participants yesterday. The rupiah fell to 9040 per dollar the United States (U.S.) central bank's policy response to unexpected analyst.

However, in the money market transactions today, Friday, November 11, 2011, the rupiah had gained 40 points (0.44 percent) to a level of 8960 per U.S. dollar.

Lindawati Susanto money market observer suggested, lowered the BI Rate 50 bps to 6 per cent to one of the causes of the weakening rupiah yesterday. "The central bank's move is bold enough to make the market was surprised and remove the rupiah," he said.

The high concern that the European crisis could slow global growth that triggered the U.S. dollar appreciation makes rupiah weakened. Plus Bank cut interest rates by 50 bps unexpected make the rupiah fell sharply Thursday.

Although the BI Rate by 50 basis points is still very attractive compared with the fed funds rate, the interest of the European Union, and Japan's interest rates are below 1 percent. This makes holding the market back are optimistic the rupiah.

With the decline in interest rates expected BI rate mortgage interest rates will soon come down so that the real sector can move faster so that it will spur domestic economic growth. The positive impact of the cuts BI Rate can not be directly perceived.

Next month the possibility of a new banking interest rates will start menyesuaian pinjamananya. Impact bond yields will also menyesuaian lower interest rates.
Source : tempointeraktif.com

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