"The rupiah has been moving into a positive zone after being corrected in the morning session. The Central Statistics Agency (BPS) revealed a deflation in April 2016 which was one of the factors which fueled the domestic currency to strengthen against the dollar," chief researcher of NH Korindo Securities Indonesia Reza Priyambada said.
The BPS announced earlier in the day that Indonesia recorded a deflation of 0.45 percent in April 2016, the biggest deflation since 2000.
The deflation of 0.45 percent in April brought the calendar inflation rate in the January-April 2016 period to 0.16 percent and year-on-year inflation rate to 3.6 percent.
The economic data suggested that Bank Indonesia (the central bank/BI) has eased policies in the domestic money market as part of the effort to help the domestic economic recovery.
After all, he added, sentiments in the money market which still varied due to external factors could prevent the rupiah from strengthening at a higher pace which will make it prone to depreciation.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2016
