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Rupiah strengthens slightly on Friday afternoon
The rupiah strengthened slightly in the afternoon interbank trade on Friday as positive sentiment from the domestic market overcame global pressure
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he rupiah strengthened slightly in the afternoon interbank trade on Friday as positive sentiment from the domestic market overcame global pressure.
The rupiah rose to Rp 13,987 per US dollar on Friday afternoon from Rp 13,990 per dollar in the previous trade.
Bank Himpunan Saudara forex market observer Rully Nova said the appreciation of the rupiah occurred despite previously the currency previously suffering from fluctuations amid market anticipation of a US interest rate jump.
'[Positive] sentiment from the domestic market following the government's plan to focus on developing real sectors helped balance external sentiment,' Rully said as quoted by Antara news agency.
The strengthening of the rupiah, he added, represented the market's confidence in the government's plan to issue an economic stimulus package.
However, he said, there was still a chance that the rupiah might continue its depreciation in the event of positive US data on domestic product growth and employment, which would increase the likelihood of the US Federal Reserve raising its interest rate.
Monex Investindo Futures head of research Ariston Tjendra concurred with Rully.
'The Fed is currently discussing the US' low inflation rate. The dollar may strengthen further if inflation data is not far from the market's estimation,' he said.
Bank Indonesia's median rate recorded that the rupiah exchange rate strengthened to Rp 14,011 per US dollar on Friday from Rp 14,128 the previous day. (ika)
