Bank Indonesia's board meeting helps push rupiah up

Bank Indonesia's board meeting helps push rupiah up

Photo Illustration: Rupiah bills. ANTARA FOTO/Sigid Kurniawan/wdy/gtm

The market estimates that Bank Indonesia Governor Perry Warjiyo and his deputies will hold the interest rate or BI 7-Day Reverse Repo Rate at five percent,
Jakarta (ANTARA) - The Indonesian rupiah closed higher by 23 points or 0.17 percent to Rp13.646 against the United States (US) dollar Wednesday evening following Bank Indonesia's board of governors meeting (RDG) here, Wednesday. "The market estimates that Bank Indonesia Governor Perry Warjiyo and his deputies will hold the interest rate or BI 7-Day Reverse Repo Rate at five percent," PT TRFX Garuda Bernanke Director, Ibrahim Assuaibi said in Jakarta.

Despite the positive sentiment on the domestic front, external factors such as the Wuhan Coronavirus outbreak in several cities in China, including Beijing and Shanghai may pull the rupiah down. The first confirmed case of Coronavirus also has been reported in the United States, the U.S. Centers for Disease Control and Prevention announced, Tuesday, January 21.

Besides the virus, the tension between U.S. and China also raises concerns among traders and investors. Although the two countries had inked the phase one trade deal, the White House planned to drop a harsh sanction against China's largest tech company Huawei.

Meanwhile, the rupiah opened higher at Rp13.665 against the dollar in the Jakarta interbank market Tuesday morning. According to Bank Indonesia's exchange rate Wednesday, the rupiah dropped to Rp13.678 against the dollar, while the day before, it was recorded at Rp13.658. (INE)
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