Rupiah Gains on Easing Ukraine Tension, Rising Forex Reserves

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  • TEMPO/Eko Siswono Toyudho

    TEMPO/Eko Siswono Toyudho

    TEMPO.CO, Jakarta – Most Asian currencies including the rupiah strengthened against the US dollar after Russia withdrew its troops from Ukrainian borders. In yesterday's currency market, the rupiah jumped 101.3 points (0.83 percent), closing at 11,677 per US dollar.

    "With lesser uncertainties, investors regained their confidence in collecting risky assets such as the rupiah," Bank Mandiri currency analyst Reny Eka Putri said.

    Reny said the rupiah also appreciated on improving domestic data, particularly the foreign exchange reserves increase to US$110.5 billion. July's Consumer Confidence Index, which stood at 119.8, is also a dominant factor that increases investors' interest in the rupiah.

    "The Foreign exchange reserves add to investors' optimism on the rupiah," he said.

    Reny's opinion is supported by the fact that, during the past week, the rupiah declined quite sharply. With a decline rate of up to 201 points (1.74 percent), speculators are likely to seek profit, selling their rupiah assets.

    Reny said the rupiah is likely to keep its uptrend today, with a chance to move sideways between 11,605 and 11,755 per dollar.