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Rupiah rises 70 points to Rp 12,978 at opening
The rupiah interbank trade rate in Thursday's first trading session appreciated by 7 basis points to Rp 12,778 per US dollar from Rp 13, 048 per dollar in previous trade
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he rupiah interbank trade rate in Thursday's first trading session appreciated by 7 basis points to Rp 12,778 per US dollar from Rp 13, 048 per dollar in previous trade.
"The rupiah exchange rate continued positive movement as a result of improvement in the absorption of the government securities auction, which resulted in the bid-to-cover ratio being bigger than sales," said chief researcher of NH Korindo Securities Indonesia Reza Priyambada as quoted by Antara news agency.
More than that, he said, the release of inflation data for March, which reached 0.17 percent or lower than the projection of 0.43 percent and a consensus of 0.19 percent, also sparked positive sentiment toward the domestic currency.
"The rupiah rate tended to strengthen thanks to the existing sentiment. However, it should be closely monitored in case of pullback," he said.
Samuel Sekuritas economist Rangga Cipta said that the rupiah had shown strength as US employment data missed expectations. "The manufacturing PMI [purchasing managers index] fell to its lowest level over the last 14 months," he said.
According to him, the deteriorating US data confirmed the US Federal Reserve's statement in which it said that it would not be aggressive in raising its interest rate this year.
"This situation will result in the continued fall of the dollar in the Asian region today," he said. (hhr)(++++)
