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Jakarta Post

Rupiah strengthens amid risks

  • Adrian Wail Akhlas

    The Jakarta Post

Jakarta   /   Tue, June 2 2020   /  01:48 am

Bank Indonesia’s (BI) policy measures and a narrowing current account deficit (CAD) will likely support the rupiah amid unfavorable financial market conditions, but risks remain as Indonesia continues to record new COVID-19 cases while facing limited healthcare capacity, experts have warned.Fitch Solutions has revised its outlook for the rupiah for 2020 to 15,500 per US dollar from its earlier projection of 16,750 after the recent gains the currency booked. The rupiah appreciated 13 percent from a recent low of 16,575 per dollar, a level unseen since the 1998 financial crisis, to 14,610 on Monday, Bloomberg data show.“We believe that BI’s policy measures will continue to cushion the rupiah in the short-term,” the researchers said. “Moreover, a forecast narrowing in CAD in 2020 due to slightly cheaper imports will also add to investors’ confidence in Indonesia...