Thursday, 24 January 2019

Us Dollar Under Pressure by The Fed, Rupiah Strengthens

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Editor:

Mahinda Arkiyasa

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  • TEMPO.CO, Jakarta - The movement of the Rupiah interbank exchange rate in Friday, January 11, 2019, has strengthened by 10 points to a level of IDR 14,045 per US Dollar.

    Head Researcher of Monex Investindo Futures Ariston Tjendra, said that the US Dollar is still feeling the effect of the Federal Reserve’s decision in delaying to increase its interest rate. "The US Dollar has weakened due to the Federal Reserve's, or the Fed, dovish policy this year," Ariston said.

    On the other hand, United States President Donald Trump informed about his success in negotiating trade with China. "The improving trade relationships between the two countries drive the market's interest in high-risk assets and supports the Rupiah," Ariston explained.

    Senior Analyst of CSA Research Institute Reza Priyambada, added that positive results from US-China trade negotiation bring good hope for the global economy, including Indonesia.

    "The trade deal will result in an effect to improve the global economy, including Indonesia, investors will start looking at Indonesia because we have good [economic] fundamentals," Reza added.

    Meanwhile, Bank Indonesia average exchange rate for January 11, 2019, was recorded at IDR 14,076, somewhat higher compared to the previous IDR 14,093 per US Dollar recorded in January 10, 2019.

    ANTARA