The lingering US-China trade dispute which is expected to end soon has offered a positive catalyst for the rupiah, PT Garuda Berjangka President Director Ibrahim Assuaibi said here on Friday.
"The trade war between the world's largest economies has posed a hindrance to the money market in the past year, with risky assets being hit amidst worries over business expansion and the impact of the conflict," he said.
US President Donald Trump said earlier that the two countries have come close to a trade agreement, which can be announced in four weeks.
The declining global crude prices also helped sentiments toward the rupiah. If the crude prices tumbled, pressure on the current account would decline accordingly.
"The current account is an essential foundation for the rupiah because it reflects the flow of foreign exchange earnings from the export and import of goods and services. When it (the current account) improves, the rupiah still has room to strengthen," he said.
The rupiah traded at Rp14,180 per dollar on Friday morning. Throughout the day, the rupiah was in the range of Rp14,130 to Rp14,180 per dollar.
Translator: Citro Atmoko, Suharto
Editor: Rahmad Nasution
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