Indonesia: Rupiah Strengthens to Rp13,354 per US Dollar

• Aug 24, 2017

TEMPO.CO, Jakarta – The rupiah was trading stronger by 5 points to Rp13,354 per US dollar in Jakarta inter-bank market this morning.

Binaartha Sekuritas Reza Priyambada in Jakarta said that the rupiah’s gain was relatively maintained following sustained inflow of foreign capital, allowing continued supply of foreign exchange.

“The policy to cut BI 7-day reverse repo rate was perceived by market players as a boost to the national economy. Such a situation is attractive so that inflow of foreign capital is quite huge,” he said.

Reza added that positive movement also took place in the bond market. Investors have bought more bonds under various terms. This has helped keep the rupiah stable.

Rully Nova, money market analyst with Bank Woori Saudara said that the rupiah will continue to consolidate and tends to get stronger following BI 7-day reverse repo rate cut.

“Money market players are assessing the impact of the policy considering the US central bank is also planning to raise its interest rate,” he said. Earlier, the rupiah was traded at Rp13,359 per US dollar.

Source: https://en.tempo.co/read/news/2017/08/24/056902762/Rupiah-Strengthens-to-Rp13354-per-US-Dollar