Market agents` high expectations of the US and China signing a trade agreement remained a positive factor for the developing countries` currencies, Valbury Asia Futures analyst Lukman Leong stated here on Wednesday, Jan 9.
"The external sentiment has helped the currencies of emerging markets, including Indonesia," he pointed out.
Moreover, the domestic sentiment was also quite conducive. Several national economic data, including the inflation rate, foreign exchange reserves, and the realization of the 2018 state budget, were quite sound and credible, he noted.
"The domestic sentiment has also triggered foreign capital inflows, pushing demand for the local currency," he stated.
Samuel Aset Manajemen economist Lana Soelistianingsih has forecast that foreign exchange reserves will likely continue to increase due to foreign capital inflows to shares and bonds markets in developing countries, including Indonesia.
"Foreign capital inflows are in line with the possibility of the Fed taking a dovish policy on its interest rate," he noted.
He added that the government`s rule on foreign exchange receipts from exports that requires investors to deposit foreign exchange earnings in local banks will also serve as a positive factor for the rupiah in future.
Reporting by Zubi Mahrofi, Suharto
Editing by Fardah
Reporter: Antara
Editor: Azizah Fitriyanti
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