Strengthening of rupiah expected after long weekend

Strengthening of rupiah expected after long weekend

An employee shows figures on the calculator at a money changer in Jakarta on Wednesday (July 22) ANTARA FOTO/Rivan Awal Lingga/foc.

The rupiah continued its rally this morning as most of the economic data showed a stable condition, particularly the CAD (current account deficit) and trade balance.
Jakarta (ANTARA) - The Indonesian rupiah is expected to strengthen against the US dollar in the Jakarta interbank market on Monday following a long weekend.

The rupiah increased 18 points, or 0.12 percent, to reach Rp14,755 per dollar on Wednesday morning, from the earlier close of Rp14,773 per dollar.

Bank Mandiri money market analyst Rully Arya Wisnubroto has forecast the rupiah to appreciate against the dollar on Monday, driven by domestic data.

"The rupiah continued its rally this morning as most of the economic data showed a stable condition, particularly the CAD (current account deficit) and trade balance," he noted on Monday.

It appeared that the demand for foreign currencies had steadily declined, he stated.

The government has declared Friday (Aug 21) a collective leave day in addition to the Islamic New Year on Thursday (Aug 20) to create a four-day weekend.

On the external front, the dollar exchange rate movements were influenced by the accommodative policies of the Fed and the US government.

"This has boosted a rise in the supply of US dollars," he remarked.

Wisnubroto has projected the rupiah to hover in the range of Rp14,665 to Rp14,780 per US dollar on Monday.

The rupiah increased 72 points, or 0.49 percent, to reach Rp14,773 per dollar last Wednesday (Aug 19), from Rp14,845 per dollar a day earlier.

According to the Bank Indonesia mid-rate on Monday, the rupiah weakened to Rp14,794 per dollar as compared to Rp14,786 per dollar the day before.
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