TEMPO.CO, Jakarta - The rupiah was trading stronger by 34 points to Rp13,328 per US dollar in Jakarta inter-bank market this morning.
Binaartha Sekuritas analyst Reza Priyambada said that the financial note and draft 2018 state budget showing the government’s optimism on Indonesian macroeconomic condition are among the factors supporting the domestic currency movement.
“An optimistic government has triggered market players to accumulate rupiah denominated assets,” he said.
In addition, according to him, the United States political condition has not been conducive to growth, making US dollar assets less attractive to accumulate.
“Such situation has made investors expect that The Fed interest will not be raised in the near future,” he said.
Samuel Aset Manajemen economist Lana Soelistianingsih said that global investors have reacted negatively to the resignation of US top officials.
“Investors doubt US President Donald Trump’s ability to manage his team and manage the budget to boost the economy,” she said.
ANTARA