TEMPO.CO, Jakarta-The rupiah continues to appreciate with the steady inflows of foreign capitals; reinforcing investors' confidence in the domestic economy.
Juda Agung, Bank Indonesia's director for Economic and Monetary Policies, said that the value of foreign capital inflow in the first quarter of this year reaches US$4.9 billion, higher than in 2015's first and second quarters.
Foreign funds entered via the stock market, the bond market, and the Bank Indonesia certificate. In March, the state bond market booked US$3.7 billion.
AT the end of the first quarter, the rupiah's year-to-date appreciation rate was 3.96 percent; trading at Rp13,260 per US dollar. The rupiah gain in quarter one was also supported by the increasing reserves of foreign exchange of export-oriented local companies.
"We see that the rupiah's current rate is in line with its fundamental value," Juda said.
