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Rupiah strengthens 0.7% to regain 13,600 level
The rupiah has continued its positive move by regaining the 13,600 level on Monday morning
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The rupiah has continued its positive move by regaining the 13,600 level on Monday morning. (Antara/Ismar Patrizki) (Antara/Ismar Patrizki)
The rupiah has continued its positive move by regaining the 13,600 level on Monday morning. (Antara/Ismar Patrizki)
The rupiah has continued its positive move by regaining the 13,600 level on Monday morning as the US dollar retreated amid disappointing US gross domestic product (GDP) data.
After scoring a 0.7 percent rise to 13,778 per US dollar on Friday last week, the rupiah on Monday morning strengthened by another 0.7 percent to Rp 13,697 as of 9 a.m.
Monex Investindo Futures researcher and analyst Faisyal said the US dollar was under pressure after US economic growth slowed to 0.7 percent in the last quarter of last year.
"It's a big punch, as GDP was the main indicator referred to by the US Federal Reserve before increasing its key interest rate," he said in Jakarta on Monday, as quoted by Kontan.co.id.
He projected the rupiah would hover between Rp 13,670 and Rp 13,850 against the Greenback, with a wider opportunity for a further increase.
Meanwhile, in the stock market, the Jakarta Composite Index (JCI) reversed direction, from a 0.11 percent increase to 4,620.36 points at the opening to a 0.3 percent drop as of 10.30 a.m, sending the JCI back to 4,600.89.
The volatility occurred while investors were anticipating inflation data, Universal Broker Indonesia head of research Satrio Utomo said in Jakarta on Monday as quoted by the Antara news agency.
"The traders are waiting for inflation data in January, which will be released today [Monday]. The analyst consensus estimates the consumer price index would be 0.64 percent, down from 0.96 percent in the previous month," he said.
Most Asian stock markets were in positive territory, lifting the MSCI Asia Pacific index by 0.7 percent. Australia's S&P/ASX 200 index increased 0.8 percent, the South Korean Kospi added 0.6 percent, while New Zealand's NZX 50 grew by 0.2 percent.
Bank of Japan's unpredicted move to reduce its benchmark interest rate to minus 0.1 percent had a positive effect on markets, as investors expected looser monetary policy to create more liquidity for the capital markets. (ags) (+)
