Global sentiment drives up rupiah to ascend on Monday

Global sentiment drives up rupiah to ascend on Monday

The US dollars and Indonesian rupiah (ANTARA/Shutterstocks/pri.

Jakarta (ANTARA) - The rupiah appreciated against the US dollar in the Jakarta interbank market early this week on the back of global sentiment.

The Indonesian currency rose 25 points, or 0.18 percent, to close at Rp14,014 per US dollar as compared to the earlier close of Rp14,039 per US dollar.

"The rupiah strengthened owing to several global sentiments and the US dollar weakening against other currencies," Bank Mandiri analyst Rully Arya Wisnubroto remarked in Jakarta on Monday.

The market has anticipated the likelihood of the Fed reducing its benchmark interest rate.

However, the Fed has hinted that it would halt loosening the monetary policy out of line with the investors' expectations.

"The Fed has signaled that it will stop lowering the interest rate, while the market still expects another cut next year," he noted.

The rupiah traded at Rp14,002 per US dollar on Monday morning. During the day, the rupiah hovered in the range of Rp13,998 to Rp14,016 per US dollar.

According to the Bank Indonesia mid-rate on Monday, the rupiah strengthened to Rp14,002 per US dollar in comparison with the earlier level of Rp14,066 per US dollar.

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