Rupiah forecast to show slight rise on Thursday

Rupiah forecast to show slight rise on Thursday

Documentation - A cashier counts banknotes at a money changer. ANTARA/Su

Jakarta (ANTARA) - Slight rupiah appreciation is projected in the Jakarta inter-bank market on Thursday after Bank Indonesia (BI), the Indonesian central bank, intervened.

By 9:44 a.m. local time on Thursday, the rupiah increased by one point, or 0.01 percent, to Rp14,258 per US dollar, from Rp14,259 per US dollar earlier.

"During Thursday's trading, the rupiah is likely to strengthen slightly. The slight depreciation and appreciation of the rupiah against the US dollar is the outcome of BI's consistent efforts to intervene in the market," PT Garuda Berjangka President Director Ibrahim Assuaibi remarked in Jakarta on Thursday.

Directing its efforts to stem further depreciation of the rupiah, the central bank has continued to up the ante of its intervention in the money market through the Domestic Non-Deliverable Forward (DNDF), he stated.

Related news: Rupiah forecast to resume weakening on Wednesday

Related news: BI signals relaxation in macro-prudential policy


On the external front, China refuted US President Donald Trump’s claim and asserted that the telephonic conversations, which Donald Trump took immense pride in, will never see the light of the day.

Conversely, China expressed dissatisfaction over the US' decision to extending current and planned tariffs on Chinese imports again. Beijing described the US' move as "totally being unconstructive."

The intensification of the US-China trade war may lead to the US economy further plunging into recession.

Assuaibi has forecast the rupiah to hover in the range of Rp14,215 to Rp14,284 per US dollar on Thursday. Related news: IDX index plunges over trade war sentiment

Related news: Yuan's weakening to not affect Indonesia's export performance: BI


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