The Jakarta Post
The rupiah strengthen to Rp 14,451 per United States dollar on Friday, 0.43 percent stronger than its value the previous day, which was Rp 14,513 to the dollar, according to the Jakarta Interbank Spot Dollar Rate (JISDOR).
Bloomberg reported the rupiah at Rp 14,457 per US dollar in the foreign exchange sport market at 12:57 p.m. on Friday, 0.16 percent stronger than its position on Thursday evening, which was Rp 14,480.
External sentiment – the weakening of the US dollar index because of negative economic data in the US – helped the rupiah appreciate.
Securities firm Samuel Sekuritas Indonesia analyst Ahmad Mikail projected that the dollar index would be at 97.8 to 97.9 and said the dollar had the potential to weaken against other main currencies – the euro and the yen.
“The US dollar index failed to maintain its position to move to 98 after data on the US purchasing manager index (PMI) in May weakened,” he said in his daily research notes as quoted by kontan.co.id.
The US PMI composite reached only 50.9 in May, lower than the previous month, which was 53. The weakening made market players worry that the US economy would slow down in the second quarter of this year.
Market players also voiced concern that tension in the US-China trade war may intensify after the Chinese Trade Ministry announced that that trade negotiations with the US could only continue if the US changed its trade policy. (bbn)