Will Rupiah Depressed, BI Keep on the Market

The global market was down again last night, still with the fears of the European Union. Securities economist Samuel, Lana Soelistianingsih inJakarta, Tuesday (15/05/2012) estimate the exchange rate will be maintained in the range of BI is now between Rp 9240 to Rp.9.260 per U.S. dollar.

Rupiah weakened again yesterday, closing at Rp 9250 per U.S. dollar(Bloomberg middle rate). Negative sentiment comes from the weakening euro for fear that the release of the Greek of the euro zone. Stock markets in Asia, including Indonesia also fell. Jakarta Composite Index fell 1.48percent to 4053.07.

While the price of Brent crude oil is stable and WTI prices drop. Of thecountry, along with the rise in nine-month SBI rate in the last three months,from lows at 3.8229 to 4.23785, it seems that expectations of interest ratesfall more limited.

Nine-month SBI rate is part of the monetary operations, so the increase in interest rates is a signal interest rates start moving up. Trend of rising interest rates is also evident from the rising yields on Treasury bonds, especially for medium and long tenor.

Rise in yields is expected to also attract funding to sing portfolio securities, which can reduce the potential of Indonesia's balance of payments deficit this year 2012.