Rupiah strengthens against dollar on central bank's intervention

Rupiah strengthens against dollar on central bank's intervention

The Indonesian rupiah and US dollar banknotes (ANTARA/Shutterstock/pri

Bank Indonesia intervened in the domestic money market, pushing the rupiah up. The intervention came on the heels of market agents' saturation towards the US dollar which appreciated in the past few days
Jakarta (ANTARA) - The rupiah strengthened against the United States (US) dollar in the Jakarta interbank market Wednesday evening after Bank Indonesia intervened in the money market. The rupiah rose 18 points, or 0.13 percent, to close at Rp14,195 against the US dollar compared to Rp14,213 earlier.

"Bank Indonesia intervened in the domestic money market, pushing the rupiah up. The intervention came on the heels of market agents' saturation towards the US dollar which appreciated in the past few days," Valbury Asia Future chief researcher Lukman Leong said in Jakarta, Wednesday.

Related news: Rupiah weakens over concern about global recession

The central bank's intervention in the money market occurred when a series of rallies against controversial bills began to fade. Hopefully, the domestic political and security condition will gradually improve, he said.

On the external side, the dollar came under pressure following the release of US manufacturing index in September which fell short of expectations. Market agents were waiting for the newest US manpower data and the outcome of US-China meeting on the trade war, he said.

"The rupiah still has the potential to continue its rally, providing the US data falls short of expectation and the tension of the trade war eases," he said.

The declining political tension in the wake of rallies against controversial bills has also slightly reduced negative sentiments in the market, Garuda Berjangka President Director Ibrahim Assuaibi said. 

Related news: Trade surplus reported in August 2019: BI

 

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