"External factors are one of the causes of the rupiah`s appreciation against the dollar," Valbury Asia Futures analyst Lukman Leong said here on Friday.
Since Chief of the Fed Jerome Powell announced the Fed rate was slightly below the neutral level, the rate hike will not be aggressive, he said.
"The dovish stance put pressure on the US dollar against global major currencies including the rupiah," he said.
In addition, the relatively low global crude prices also helped the rupiah appreciate against the dollar, he said.
"The low global crude prices will help the performance of the trade balance," he said.
He added that the government`s optimism over the national economy that will continue to pick up will also help the rupiah strengthen.
According to Bank Indonesia`s mid rate on Friday, the rupiah strengthened to Rp14,339 per dollar compared to Rp14,408 per dollar the day before.
Reporting by Zubi Mahrofi
Editing by Suharto, Bustanuddin
Reporter: ANTARA
Editor: Bustanuddin
Copyright © ANTARA 2018
