Rupiah strengthens on central bank's decision to hold BI-Rate

The rupiah exchange rate against the US dollar at the close of trading on Friday strengthened by 54 points, or 0.30 percent, to Rp17,694 per US dollar, compared with the previous close of Rp17,748 per US dollar.

Research and Development at Indonesia Commodity & Derivatives Exchange (ICDX), Muhammad Amru Syifa, assessed that the rupiah strengthened after receiving support from Bank Indonesia’s decision to maintain the BI-Rate at 5.75 percent.

“The policy remains directed at maintaining rupiah and inflation stability, while providing support for economic growth,” he told ANTARA in Jakarta on Friday.

Looking at global sentiment, the rupiah’s movement is still influenced by the direction of the US dollar and Treasury yields.

“The Federal Open Market Committee (FOMC) minutes also show differences of opinion among Fed officials regarding the direction of interest rates, so the outlook for US monetary policy remains a market concern,” Amru said.

Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) also strengthened on the day to Rp17,705 per US dollar from Rp17,779 per US dollar previously.