Tuesday, 26th September 2017

Rupiah strengthens 8 points to close at Rp13,192 per dollar

13th September 2017 | 5.190 Views
Jakarta (ANTARA News) - The Indonesian rupiah rose eight points to close at Rp13,192 per dollar in the Jakarta inter-bank spot market on Wednesday, compared to the previous close at Rp13,200 per dollar.

"The rupiah strengthened against the US dollar as the expectation of the US economy is not as good as the previous forecast," economist Lana Soelistianingsih of Samuel Aset Sekuritas stated here on Wednesday.

Theoretically, based on the Real Exchange Rate (RER) method from the Bank of International Settlement (BIS), the rupiah still has the potential to appreciate against the dollar, she noted.

Although the countrys foreign exchange reserve saw an increase in the past couple of months and hit its record high, it seems the rupiah will still be unable to strengthen to below Rp13 thousand per dollar, she explained.

One of the factors holding the rupiahs appreciation against the dollar is the US Federal Reserves policy to raise its benchmark interest rate and to lower its balance sheet. As a result, investment inflows may return to the United States, he revealed.

Analyst Reza Priyambada of Binaartha Sekuritas meanwhile noted that the global crude prices, which stay within the positive zone, also contributed to the movement of the rupiah to the positive zone.

WTI Crude rose percent 0.91 percent to US$48.67 per barrel, and Brent Crude increased 0.68 percent to $54.64 per barrel as of Wednesday.

"The global crude price hike may maintain the further movement of the rupiah," he concluded. (*)