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Rupiah Strengthens over Domestic Sentiments
A teller at a money changer handles Indonesia rupiah bank notes in Jakarta, November 11, 2016. REUTERS/Darren Whiteside
Thursday, 08 November, 2018 | 19:40 WIB
Rupiah Strengthens over Domestic Sentiments

TEMPO.CO, Jakarta - The rupiah`s interbank exchange rate strengthened this afternoon against the US dollar due to domestic factors. The rupiah gained 142 bps to trade for 14,452 per US dollar. 

"Positive domestic sentiments dominated the rupiah's movement," CSA Research Institute senior analyst Reza Priyambada said in Jakarta, Thursday, November 8.

Reza said domestic factors that helped the rupiah gain included improving forex reserves, import restrictions, and the implementation of the domestic non-deliverable forward (DNDF) transactions.

"The DNDF is a hedging instrument that supports government efforts to stabilize the rupiah," he said.

Read: Rupiah Expected to Strengthen over Possible US-China Deal 

The rupiah's appreciation was also attributable to external factors. One of them is the US elections result, with the Democrat winning. The situation made US markets concern that their government's fiscal stimulus policies may face obstacles.

"The market responded by reducing demands on dollar-denominated assets, thus pushing the currency down and allowing the rupiah to move in a positive direction," he said. 

Meanwhile, Samuel Aset Manajemen's economist Lana Soelistianingsih said that the rupiah appreciation was also supported by Bank Indonesia's (BI) decision to strengthen forex bearing by signing a bilateral currency swap deal with its Singaporean counterpart. BI and the Monetary Authority of Singapore (MAS) signed a US$10bn deal that helped stabilize the rupiah.

ANTARA



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