Journalist: Sugeng Adji Soenarso | Editor: Wahyu T. Rahmawati
KONTAN.CO.ID – JAKARTA. Bank Indonesia raised its benchmark interest rate by 25 basis points (bps) this week. Analysts believe that rising interest rates will keep foreign currency or foreign currency (forex) investments attractive.
HFX International Futures Chairman-Commissioner Sutopo Widodo said forex trading remains attractive in all conditions, from high inflation to recession. According to him, this is because there are many types of currencies that can be exchanged.
“Economic and geopolitical shifts create short-term fluctuations that can be exploited,” Sutopo told Kontan.co.id on Wednesday (8/24).
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Sutopo also believes that amid this rise in interest rates, trade currencies should generate come back 2%-5%. The figure exceeds come back deposit interest in one month.
DCFX Futures analyst Lukman Leong agrees that the impact of rising interest rates is very good for the Rupee. Moreover, the tone falcon BI governor’s statement regarding the Indonesian economy also gives a signal if BI still has room for another rate hike at the next meeting.
While rising interest rates can put pressure on the economy, currency stability is also very important. An increase in interest rates will also make the rupee more attractive and, of course, reduce consumption and inflation.
Indeed, if the rupee strengthens, the foreign currency weakens. However, Lukman is of the view that the Rupee still tends to be depressed against the US Dollar due to the Fed’s aggressive interest rate policy and the status of the US Dollar as a currency. refuge.
Lukman believes that the dollar will still be dominant at least until the end of the year. The Fed rate should be between 3.25% and 3.5% for now. “With advantageous interest rates and monetary status Safe Haven, the US dollar will always be attractive for investment,” he said.
Apart from the US dollar, Lukman also believed that commodity currencies such as the Australian dollar (AUD) and Canadian dollar (CAD) were also attractive. Indeed, both currencies are considered capable of withstanding the onslaught of the US dollar (USD).
Sutopo added that in times like this, it is advisable to avoid the Euro (EUR) and British Pound (GBP) first. Indeed, both currencies are sensitive to current conditions. “Sensitive currencies like the euro and the pound are likely to weaken in the current environment,” he concluded.
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