Jakarta (ANTARA News) - The movement of the rupiah exchange rate of inter-bank transaction in Jakarta on Wednesday afternoon rose by 60 points to Rp14,768 compared to the previous position of Rp14,828 per US dollar.
"External negative symptoms related to the trade war, which tended to begin to subside, became a supporting factor for the rupiah," Woori Saudara Indonesia Bank`s money market observer, Rully Nova, stated here on Wednesday.
He noted that the tension between the United States-China trade war which had eased has triggered market players to glance at assets in developing countries that have a stable economy, one of them is Indonesia.
"Demand for rupiah-denominated assets has increased, which has had an impact on the strengthening of the rupiah exchange rate," he remarked.
According to him, one of the concerns of market participants was the increased foreign exchange reserves in October and Indonesia`s economic growth in the third quarter above the 5 percent level.
"Even though it is still overshadowed by the sentiment of the widening current account deficit in the third quarter of 2018, it is expected that national economic growth sentiment can compensate," he added.
He projects that the trend of rupiah appreciation against the US dollar will take place until the upcoming Federal Open Market Committee (FOMC) meeting in December 2018.
"Market participants will look at the Fed`s policy regarding its benchmark interest rate," he revealed.
Meanwhile, on Nov 14, the central exchange rate of BI recorded the rupiah currency to have strengthened to Rp14,755 compared to the previous day(Nov 13) in the position of Rp14,895 per US dollar.
Reporting by Zubi Mahrofi
Editing by Eliswan, Yoseph Hariyadi