TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Rupiah strengthens 105 points on Monday afternoon
The rupiah strengthened against the US dollar on Monday afternoon, boosted by Indonesiaâs foreign exchange reserves, which increased in December
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
T
he rupiah strengthened against the US dollar on Monday afternoon, boosted by Indonesia's foreign exchange reserves, which increased in December.
The rupiah traded inter banks in Jakarta on Monday afternoon strengthened by 105 points to Rp 12,050 per US dollar from Rp 12,155.
A financial market analyst from Bank Mandiri, Ruly Arya Wisnubroto, said Indonesia's foreign exchange reserves that amounted to US$99.4 billion at the end of December 2013, up by $2.4 billion from $97 billion in the previous month, had added to positive sentiment for the domestic currency.
"Bank Indonesia [BI] is also optimistic that the foreign exchange reserves will surpass $100 billion in the coming months," he said in Jakarta on Monday, as quoted by Antara news agency.
Ruly said BI's optimism about the domestic trade balance, which was expected to return to surplus, had empowered the local currency.
Externally, he added, the US dollar tended to weaken against a majority of the global prime currencies after the recently released US employment data showed growth that was less than expected, despite a decline in unemployment levels in the country.
"The US employment growth that was less than expected mean the markets are expecting that the US Federal Reserve [Fed] will not carry out its stimulus reduction aggressively," said Ruly.
He said both external and domestic sentiments that triggered the strengthening of the rupiah were still medium-term in nature.
"It is expected that this week, the rupiah will move within the range of Rp 11,723 and Rp 12,132 per US dollar," said Ruly.
Meanwhile, BI's median rate on Monday recorded that the rupiah strengthened to Rp 12,047 per dollar from Rp 12,197 on Friday. (ebf)
