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Jokowi-Kalla inauguration euphoria causes rupiah to strengthen: Analyst
Financial analyst Zulfirman Basir said the euphoria from the inauguration of Joko âJokowiâ Widodo and Jusuf Kalla as Indonesian president and vice president for the period of 2014-2019 had prompted the rupiah exchange rate to strengthen against the US dollar
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inancial analyst Zulfirman Basir said the euphoria from the inauguration of Joko 'Jokowi' Widodo and Jusuf Kalla as Indonesian president and vice president for the period of 2014-2019 had prompted the rupiah exchange rate to strengthen against the US dollar.
'From the fundamental side, the euphoria of the inauguration has given positive sentiments to the rupiah,' said Zulfirman, an analyst with Monex Investindo Futures, as quoted by Antara news agency in Jakarta on Monday.
Moreover, he added, expectations of a relatively stable domestic political condition following the meeting between Jokowi and his rival during the July 9 presidential election, Prabowo Subianto, had assuaged investors' fears about political volatility in Indonesia.
Zulfirman said that the expectation of political stability among market players would positively impact Indonesia's future economic growth rate and that market players were hoping that improvements in domestic infrastructure would line up with the development programs proposed by the Jokowi-Kalla administration.
At the midday trading session, the rupiah exchange rate traded among banks in Jakarta had strengthened by 84 points to Rp 12,025 per US dollar from Rp 12,109.
Zulfirman said that the Jokowi-Kalla Cabinet announcement was the next major predictor of Indonesia's future economic prospects.
Zulfirman added that the central bank of China's latest banking policies could eventually aid Indonesia's economy, one of China's trade partners.
'The rupiah outlook is relatively neutral. It is predicted that the rupiah will be traded within the range of Rp 11,985 - Rp 12,000 per US dollar on Monday,' he said. (ebf)(++++)
