Rupiah on Steady Downtrend
Thursday, 22
May, 2014 | 14:54 WIB
TEMPO.CO, Jakarta -
The market's disappointment over political parties' coalition ahead of the
presidential elections has sank the rupiah deeper. In yesterday's money market
transaction, the rupiah fell 19 points (0.16 percent) to Rp11,508 per US
dollar, marking a three-day downtrend with a correction of more than 100 basis
points (bps).
Bank
International Indonesia (BII) economist Juniman said investors were left
dissatisfied with yesterday's results of presidential and vice presidential
candidates' coalition. "It led to profit taking in rupiah-denominated
assets, from stocks to bonds markets."
Golkar's
sudden decision to move closer to the Prabowo-Hatta pair caused imbalance in
the parliament's coalition support. The coalition of parties supporting
Prabowo-Hatta has 292 seats in parliament, while the Joko Widodo-Jusuf Kalla
pair only managed to grab 207 seats.
Golkar's
decision was responded negatively by the market; not because investors favor
Jokowi, but because the strong support for Prabowo in the DPR will make the
administration rate ineffective—even if Jokowi becomes president. "Ever
since Golkar officially announced its support for Prabowo, stock prices and the
rupiah rate have fallen," said Juniman.
Today the
rupiah is expected to remain weak, moving between Rp11,450 and Rp11,550 per US
dollar. "The fading sentiment from the elections will prompt the market to
be cautious and take the safe position," said Juniman.
No comments:
Post a Comment