Rupiah strengthens due to weakening dollar

Jakarta, (ANTARA News) - The inter-bank exchange rate of rupiah in Jakarta on Tuesday afternoon rose 4 points to Rp14,103 per US dollar from Rp14,107 per dollar, triggered by a weakening US dollar.

"Todays rupiah is actually flat. But you could say it strengthened a little, because the US dollar was weakening as market players were still optimistic about the US-China negotiations," Futures Monex Investindo money market analyst Faisyal said on Tuesday.

Faisyal added that market players were still awaiting the results of the board meeting of the US Federal Reserve Market (FOMC) policy meeting.

"It also makes the rupiah still slightly stronger but limited, considering the market still sees other developments such as Brexit and others," he noted.

The strengthening of the rupiah was also supported by falling oil prices. Meanwhile, from the domestic side, there is still relatively little positive sentiment.

This week, the rupiah has a chance to strengthen below Rp14 thousand if external and domestic sentiments meet expectations.

A number of important events are expected this week. In addition to the US-China meeting on Thursday, there will also be the BI Board of Governors Meeting.

"If they are optimistic about the Indonesian economy, the dollar will be depressed by the US-China meeting results, and the FOMC meeting will also be dovish. "It will rise below Rp14 thousand," Faisyal remarked.

The rupiah exchange rate opened lower in the morning, at Rp14,113 per US dollar. Throughout the day, the rupiah moved in the range of Rp14,101 per US dollar to Rp14,130 per US dollar.

Meanwhile, Bank Indonesias middle exchange rate on Tuesday showed that the rupiah weakened to Rp14,119 per US dollar compared to Rp14,106 per US dollar the previous day.

Source: Antara News

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