The rupiah interbank trade rate in Jakarta on Monday morning appreciated by 39 basis points to Rp 12,107 per US dollar, up from Rp 12,146 per dollar in previous trading
he rupiah interbank trade rate in Jakarta on Monday morning appreciated by 39 basis points to Rp 12,107 per US dollar, up from Rp 12,146 per dollar in previous trading.
'The majority of currencies in Asia including the rupiah are recording improvements following China's move to reduce its deposit and lending rates,' Monex Investindo Futures head of research Ariston Tjendra said as quoted by Antara news agency.
China decided to reduce its benchmark deposit rates and lending rates in order to anticipate a possible economic slowdown in China.
China's central bank reduced its deposit rate by 25 basis points to 2.75 percent and its lending rate by 40 basis points to 5.6 percent.
'As China is it's main trade partner, Indonesia will enjoy a positive impact from this move since market players are expecting China to see a better economy in the future,' he said.
He added that the market euphoria over the fuel price hike had started to dissipate among investors but they were expecting the government to implement more moves and policies that could boost the domestic economy in the long run. (nfo)
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