The Jakarta Post
The rupiah strengthened to Rp 14,105 per US dollar on Monday, 1.71 percent higher than on Friday, according to the Jakarta interbank spot dollar rate (JISDOR), triggered by a number of sentiments.
Monex Investindo Futures analyst Faisyal said one of the positive sentiments that triggered the strengthening of the rupiah was a statement made by United States Federal Reserve chairman Jerome Powell who said the US central bank would be more cautious in hiking its reference rate this year.
The statement was made after the release of positive data on the non-farm payroll and payment average rate in the US last week.
“Market players’ interpretation is that the Fed would not hike the key rate for awhile,” Faisyal said, adding that the other positive sentiments included the meeting between representatives of the US and China to discuss the trade war.
The rupiah was also positively affected by the government shutdown in the US, which was brought about due to disagreements over the funding of a wall on the US-Mexico border.
“There is an indication that the shutdown could take longer than what was expected,” Faisyal said as quoted by kontan.co.id.
He added that the positive sentiments would take place for a while, which could further strengthen the Indonesian currency in the coming days.
Nearly all currencies in Asia strengthened on Friday, except the Hong Kong dollar.
Meanwhile, the US dollar index was at 96, 0.19 percent weaker than its position on Friday. (bbn)