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Indonesian Rupiah recovers further, rising above 14,800 per US dollar

The Jakarta Post | November 8, 2018
 The Islamic Chamber of Commerce , Industry and Agriculture (ICCIA)

The rupiah is continuing to regain strength, changing hands at Rp 14,764 per United States dollar on Wednesday, according to the Jakarta interbank spot dollar rate (JISDOR).

The currency had been quoted at Rp 14,891 per US dollar on Tuesday and Rp 14, 972 on Monday, indicating a recovery trend since Oct. 30, when it was still quoted at Rp 15,237 per US dollar.

Bank Indonesia Deputy Governor Dody Budi Waluyo said on Tuesday that the rupiah's appreciation was supported by a combination of external factors and positive domestic economic sentiment.

A meeting between US President Donald Trump and Chinese President Xi Ping was expected to put an end to the trade war, while the recent release of GDP data was buoying domestic sentiment, pointing to annual growth of 5.17 percent.

Meanwhile, futures firm Monex Investindo Futures analyst Faisyal said the midterm elections in the US had put pressure on the US dollar, as investors were reluctant to invest their money in the greenback.

He added that the rupiah was also benefiting from lessening concern about Brexit after the United Kingdom and the European Union were close to an agreement.

Dody declined comment on what the latest recovery of the rupiah may mean for BI’s interest rate policy. He said BI was taking into account many factors, including moves by the US Federal Reserve, which was likely to increase its key rate. “It depends on our assessments in the future. We will discuss it at our meeting,” he added as reported by kontan.co.id. (bbn)