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Rupiah slightly strengthens Monday afternoon
The rupiah strengthened three points to Rp 13,155 per US dollar from Rp 13,158 in trade in Jakarta on Monday afternoon
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The rupiah strengthened three points to Rp 13,155 per US dollar from Rp 13,158 in trade in Jakarta on Monday afternoon.
'The rupiah moved flatly with a tendency to appreciate as financial market players responded positively to Indonesia's economic condition, which was quite stable,' NH Korindo Securities Indonesia head of research Reza Priyambada said as quoted by Antara in Jakarta on Monday.
He said sentiment from Standard & Poor's (S&P), which gave an improved outlook on Indonesia's debt ranking, became positive last week and was one of the reasons the currency appreciated.
'Some financial market players still consider it positive following the change in outlook. It is hoped that the government will work rapidly in realizing infrastructure development so that Indonesia's potential to get an investment grade will open up,' he said.
Meanwhile, Monex Investindo Futures head of research Ariston Tjendra said the rupiah was still being held back as core US consumer price index (CPI) data released in April was better than expected.
CPI is an inflation indicator, so the data results can increase the chance of the US Federal Reserve (Fed) increasing its benchmark rate.
'The rate expectation enables the US dollar to keep strengthening. The markets are speculating that the Fed will start introducing monetary tightening in the second half of this year. The speculation will maintain the strengthening of the US dollar,' said Ariston.
Meanwhile, Bank Indonesia's recorded that rupiah's median rate weakened to Rp 13,186 per dollar from Rp 13,136 the previous day. (ebf)(+++)
