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Jakarta Post

Rupiah sees strengthening trend over four days

  • News Desk

    The Jakarta Post

Jakarta   /   Wed, March 14, 2018   /   01:49 pm
Rupiah sees strengthening trend over four days A money changer at the ITC Kuningan shopping center exchanges US dollar banknotes on Feb. 28. (Antara/Puspa Perwitasari)

The rupiah has been strengthening over the last four consecutive trading days, reports The currency was Rp 13,735 per US dollar at 10:11 a.m. on Wednesday on the foreign exchange market, or 0.12 percent higher than Rp 13,752 at the close of trading on Tuesday.

According to the Jakarta interbank spot dollar rate (Jisdor), the rupiah also strengthened by 0.13 percent on Wednesday to Rp 13,739 against US dollar, from Rp 13,757 per US dollar the previous day.

Jisdor recorded that the last three days saw a strengthening trend in the national currency.

Economist Ahmad Mikail of Samuel Sekuritas Indonesia said the US dollar had been weakening against other currencies due to a record inflation in the United States of 2.2 percent year-on-year (yoy), compared to 2.1 percent yoy in February.

“The low inflation rate in the US eases concerns over the possibility of a fourth increase in the Fed fund rate,” said Ahmad.

He expected the rupiah would fall between 13,750 and 15,770 against the US dollar on Wednesday.

Meanwhile, Standard & Poor's (S&P) Global Ratings agency said on Tuesday that the rupiah's depreciation toward Rp 15,000 per US dollar was the level to watch out for. “Investors feel that Rp 15,000 is the psychological level beyond which they cannot continue operating,” said S&P Indonesia and Malaysia lead analyst Xavier Jean. (bbn)