Rupiah closes stronger on Monday on confidence in Indonesias economy

Jakarta (ANTARA News) - The Indonesian currency rupiah gained 69 points trading at the level of 14,471 per U.S. dollar in inter-bank transaction on Monday afternoon.

"The rupiah appreciation is attributable to market players confidence in the countrys economic fundamental," financial market observer from Bank Woori Saudara Indonesia Tbk Rully Nova said here on Monday.

Rully said the economic policy package XVI issued earlier this month by the government gave positive hope for redressing in the countrys current account balance.

The country recorded a widening in its current account deficit to US$8.8 billion in the third quarter of this year from US$4.6 billion a year earlier and from US$8 billion in the second quarter of this year.

"So far current account deficit has put pressure on rupiah. Rupiah would strengthen on improvement in CAD and steady growth of the economy," Rully said.

In addition relaxation in the trade war between China and the United States has psychological effect on the market in developing economies, he said.

"It reported that Donald Trump and Xi Jinping (Chinese President) will take time for talks at the G20 summit meeting in Buenos Aires, Argentina. Agreement is expected between the two economic giants," he said.

Senior analyst of CSA Research Institute Reza Priyambada said dollar rise had been curbed by a number of other world currencies including rupiah amid Thanksgiving celebrations.

"The U.S. bond yield also tended to decline contributing to propping up rupiah," he added.

Source: ANTARA News

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