Indonesia currency, Rupiah jump again dollar gaining nearly 2 percents on trade yesterday. Rupiah stronger pushed by positive sentiment on possibility delay of rise US interest rate. After job data which show better than expected, dollar flow back in emerging market.
Internal sentiment about correction on fuel price, push rupiah stronger than dollar farther. It’s because a lot of opinion that see fuel price is not cheap anymore, in the middle of falling oil price. But the issue about fuel price had sent rupiah stronger than dollar and this is still fluctuating.
The Indonesia economic component is just like smoke that can't hold its existence and also its position. This sent rupiah will continually become speculative at currency market. Therefore this makes rupiah stronger than expected in few months.
In recent year’s rupiah position have experienced depreciation more than 20 percents. However 2 percent gaining is still nothing, compare to the best position on year last. But at least arise expectation will give positive signal in rupiah position.
If we see farther, there are some positive sentiments to push the stronger rupiah. One of them is budget expense remained which still very big, almost 40 gratuity of is rest of budget which still not yet been expended by the rest of range of time which only less than 3 month. This make the window dressing can leave is earlier than estimated
From various ministry likely is also going to be rush on finishing remained budget. This would make the real sector start to move faster and make the foreign investor start to step into the stock yesterday. Net buy volume was looked big enough by foreign investor yesterday, till soar to the highest stock in Asia pacific
Perhaps high demands on rupiah make rupiah stronger yesterday. It is possible that will turn into the action of profit taking. Remember the habit after buy action of the foreign investor, usually will be followed by profit taking on the next day.
Stronger Rupiah will be on hold, or even still have to grapple together in lower number again. This is because the economics condition still not yet stable. Government still struggle in the real sector movement becoming motor for economic growth, in the middle of massive job cut which is still going on.