Positive sentiment of Europe, Rupiah Stronger

Rupiah against the U.S. dollar on Thursday (4/12/2012) morning, rose by 35 points, responded positively to the bond purchase program by the European Central Bank (ECB) to assist with the debt problems of Italy and Spain.

Exchange rate of rupiah in Jakarta interbank ditransaksi Thursday morning rose by 35 points to $ 9150 than ever before in the position of Rp 9185 per U.S. dollar.

Monex Money market observers Investindo Futures, Johanes Ginting here on Thursday said that the domestic exchange rate strengthened against the U.S. dollar as speculation continued about the program from the ECB bond purchases, thus helping to relieve tension in the bond market which was hit by debt problems of Italy and Spain.

"Conditions that make the euro strengthened against the U.S. dollar and also a positive impact on the rupiah. ECB said that the program remains a bond purchase option, it appears that it managed to reduce spike in bond yields 10-year tenor Italy and Spain," he said.

He added that the conditions it shows investors are quite sensitive to the level of yield. Although the commentary is somewhat vague, the ECB has brought positive sentiment in financial markets. "Policy makers are still trying to maintain the stability of asset markets and probably will do whatever it takes," he said.

Meanwhile, market analysts, Civil Society Bank Rully Nova added, the condition of China is experiencing high inflation and a decline in exports may be one of the negative sentiment in the future. "Conditions are still minimal global positive sentiment will lead to money market participants holding back the U.S. dollar compared to major currencies including the risk of rupiah," he said.

Nevertheless, he continued, BI is still intervene in the exchange rate so as not to penetrate the domestic level of Rp 9,200 per U.S. dollar for domestic economic growth is maintained. He estimates, the rupiah was stable, but with a tendency to move in the depressed range of Rp 9160 to Rp 9190 per U.S. dollar today.