Jakarta (Antara Bali) - Rupiah extended gain on Tuesday over the U.S. dollar trading at the level of 12,134 per dollar in the opening trade from 12,180 per dollar earlier.
Monex Investindo Futures' analyst Zulfirman Basir said the government's decision to raise the subsidized oil fuel price gave a positive sentiment.
There is expectation that the country's current account deficit would narrow contributing to improving the country's economy in the coming months, Zulfirman said.
"Investors see the government's decision in raising the BBM price as positive for rupiah," he added.
The BBM price hike is also expected to result in efficiency in oil consumption and cut in imports of energy that had been the main culprit behind the current account deficit so far, he said.
However, he warned that the dollar strengthening on Monday night could put pressure on rupiah .
The U.S. dollar gained following negative growth recorded by the Japanese GDP in the third quarter of this year.
Samuel Sekuritas' economist Rangga Cipta said the BBM price hike was not as high as expected but it was expected to bring positive impact on the domestic financial market.
The government raised the subsidized BBM prices by Rp2,000 per liter as against market expectation of Rp3,000 per liter
"The BBM price hikes would have positive effect on fiscal and current account balance," Rangga said.
The negative effect is a surge expected in inflation and slowdown of economic growth, he said, adding, inflation is forecast to rise to 7.5-8 percent in the next 12 months. (WDY)
COPYRIGHT © ANTARA News Bali 2014
Monex Investindo Futures' analyst Zulfirman Basir said the government's decision to raise the subsidized oil fuel price gave a positive sentiment.
There is expectation that the country's current account deficit would narrow contributing to improving the country's economy in the coming months, Zulfirman said.
"Investors see the government's decision in raising the BBM price as positive for rupiah," he added.
The BBM price hike is also expected to result in efficiency in oil consumption and cut in imports of energy that had been the main culprit behind the current account deficit so far, he said.
However, he warned that the dollar strengthening on Monday night could put pressure on rupiah .
The U.S. dollar gained following negative growth recorded by the Japanese GDP in the third quarter of this year.
Samuel Sekuritas' economist Rangga Cipta said the BBM price hike was not as high as expected but it was expected to bring positive impact on the domestic financial market.
The government raised the subsidized BBM prices by Rp2,000 per liter as against market expectation of Rp3,000 per liter
"The BBM price hikes would have positive effect on fiscal and current account balance," Rangga said.
The negative effect is a surge expected in inflation and slowdown of economic growth, he said, adding, inflation is forecast to rise to 7.5-8 percent in the next 12 months. (WDY)
Editor : I Gusti Bagus Widyantara
COPYRIGHT © ANTARA News Bali 2014