Rupiah appreciates as regional currencies record positive trend

Rupiah appreciates as regional currencies record positive trend

Illustration - A worker showed figures on the calculator at a money changer in Jakarta. ANTARA FOTO/Rivan Awal Lingga/foc.

The market has responded to a new monetary policy after the Fed Governor Jerome Powell launched the Federal Reserve's new strategy that is aggressive.
Jakarta (ANTARA) - The rupiah strengthened against the US dollar in the Jakarta interbank spot market on Friday evening on the back of a positive trend recorded by most Asian currencies.

The rupiah rose 28 points, or 0.19 percent, to close at Rp14,632 per dollar, from Rp14,660 per dollar earlier.

"The market has responded to a new monetary policy after the Fed Governor Jerome Powell launched the Federal Reserve's new strategy that is aggressive," PT TRFX Garuda Berjangka President Director Ibrahim Assuaibi stated in Jakarta on Friday.

Addressing a symposium, Powell stated that the Fed will endeavor to reach an average inflation rate of two percent to ensure economic recovery and job creation.

Moreover, the market has responded favorably to the news that Japanese Prime Minister Shinzo Abe will resign on Friday.

On the domestic front, the COVID-19 pandemic in Jakarta has shown no signs of abating. Jakarta Governor Anies Baswedan has extended the transitional period of large-scale social restrictions (PSBB) for another two weeks.

Jakarta reported 820 new COVID-19 cases on Friday (Aug 28), the highest daily since the first COVID-19 case was detected in the capital.

As of Aug 28, the number of COVID-19 cases in Jakarta reached 36,462, with 28,288 patients, or 77.6 percent, recovering and 1,147 patients, or 3.1 percent, succumbing to the virus. Meanwhile, 7,027 people are receiving treatment for COVID-19.

"With the extended transitional period of PSBB, Indonesia's likelihood of plunging into recession has increased, despite the government continuing to adopt strategies to encourage the market, particularly aimed at addressing stagnant public consumption and investment concerns owing to restrictions on public activities during the pandemic," he stated.

According to the Bank Indonesia mid-rate on Friday, the rupiah strengthened to Rp14,702 per dollar, from the earlier level of Rp14,714 per dollar. Related news: Rupiah weakens prior to end of PSBB transitional period
Related news: Rupiah continues rally against dollar on Tuesday


 

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