Rupiah strengthens to Rp13,339 per US dollar on Thursday

Jakarta (ANTARA News) - The Indonesian rupiah has strengthened to Rp13,339 per US dollar on Thursday evenings Jakarta interbank trade, or appreciated seven points, as compared to the previous transaction at Rp13,346.

"The domestic financial market has responded positively to a presidential decree on accelerating ease of doing business recently issued by the government," Lukman Leong, an analyst from Platon Niaga Berjangka, stated here on Thursday.

Leong remarked that the positive sentiment due to the new regulation had resulted in strengthening the rupiah on Thursdays transaction.

In terms of the new policy in doing business, Leong expected more accountable permit submission that allows investment realization.

"Higher investment will support sustainable domestic economic growth," he said.

However, Leong has observed that the rupiahs appreciation is still relatively limited, as some US economic reports have indicated positive progress, one of which claims about the lower unemployment rate.

"This positive report will strengthen the value of the US dollar against several global currencies," he said.

The US government announced in early August that the unemployment rate had dropped to 4.3 percent in July 2017, from 4.9 percent last year.

Meanwhile, the middle rate of Bank Indonesia, the Indonesian central bank, on Thursday weakened to Rp13,351 as compared to the prior exchange value of Rp13,343 per US dollar.(*)