Rupiah gains over dollar on relaxation of trade war

Rupiah gains over dollar on relaxation of trade war

An employee shows rupiah and US dollar currencies at a money changer in Jakarta in November 2018. ( ANTARA FOTO/Muhammad Adimaja/hp.)

Jakarta, (ANTARA News) - The Indonesian currency rupiah closes stronger against the U.S. dollar in inter-bank transaction on Wednesday.

The currency traded at the level of 14,601 per dollar gaining 23 points from earlier level of 14,624 per dollar.

Chief researcher of Monex Investindo futures Ariston Tjendra attributed the rupiah appreciation to relaxation of trade war between the United States and China.

Investors began to eye risk assets, Ariston said.

"The United States and China would hold further discussion after the 90-day postponement to impose import tariff," he said.

He said he hoped the tension between the two world`s economic giants would recede so as not to cause turbulence in the market in developing economies including Indonesia.

Analyst of CSA Research Institute, Reza Priyambada

said intervention by Bank Indonesia in foreign exchange market helped strengthen rupiah.

"Intervention by the Central Bank started from spot market and purchases of state securities (SBN) and auction of Domestic Non-Deliverable Forward (DNDF)," he said.

Meanwhile, Bank Indonesia middle exchange rate on Wednesday showed the domestic currency to strengthen to the level of 14,577 per dollar from earlier level of 14,613 per dollar.

Reporting by Zubi Mahrofi, Albert Saragih
Editing by Bustanudin