Rupiah strengthens over expectation of dovish Fed

Rupiah strengthens over expectation of dovish Fed

"Sentiments that contributed to the rupiah's appreciation remain due to the expectation of the Fed striking a dovish tone and the projection of the US economy."
Jakarta (ANTARA) - The rupiah rose 45 points to close at Rp14,188 per dollar in the Jakarta interbank market on Wednesday evening, as investors expected the Fed to strike a dovish tone in its interest rate policy.

"Sentiments that contributed to the rupiah's appreciation remain due to the expectation of the Fed striking a dovish tone and projection of the US economy," Monex Investindo Futures analyst Dini Nurhadi Yasyi noted.

Most analysts believe that the Fed will not raise its interest rate at its meeting this week.

The Fed Governor Jerome Powell remarked that the current Fed Fund Rate (FFR) had come close to its normal level, coupled with the US economic data that had yet to show a significant change.

The rupiah traded at Rp14,227 against the US dollar in the morning and moved within the range of Rp14,178 to Rp14,235 per dollar throughout the day.

According to the Bank Indonesia mid-rate on Wednesday, the rupiah weakened to Rp14,231 per dollar as compared to Rp14,228 per dollar earlier.

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