REPUBLIKA.CO.ID, JAKARTA -- The rupiah traded among banks in Jakarta, Wednesday (18/11), was moving down by 31 points to Rp 13,777 per US dollar, compared to the previous position at Rp 13.746 per US dollar.

Economist of Samuel Sekuritas, Rangga Cipta, said that the US dollar regained some strength against the majority of world currencies, including the rupiah, in line with US inflation. US inflation in October 2015 rose to 0.2 percent on an annual basis, while core inflation remained at the level of 1.9 percent.

"The US inflation exceeded market expectations, so that a potential increase in the Fed funds rate rises," he said, Wednesday (18/11).

Meanwhile, sentiment of the increase of interest rate of the US central bank would also be re-confirmed in the release of Federal Open Market Committee (FOMC). If the result confirms the planned increase in US interest rates in December 2015, the US dollar will remain strong.

According to him, Bank Indonesia would still take measures of monetary easing by cutting primary minimum reserve requirement in rupiah, from the previous eight percent to 7.5 percent, by 1st December 2015.

"The cutting was intended to encourage the growth of credit," he added.

Money market analyst at PT Bank Mandiri Tbk, Renny Eka Putri, said that Bank Indonesia was also quite disciplined in seeking a reduction in the current account deficit. The inflation is maintained and the domestic exchange rate was fluctuated with stable range.

"Domestic macroeconomic conditions has shown improvement," she said.

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