"The appreciation of the rupiah in the past few days occurred not because of intervention from Bank Indonesia but has been driven by market mechanism," the bank governor, Darmin Nasution, said.Jakarta (ANTARA News) - Indonesia`s central bank predicts the country`s rupiah currency would keep appreciating following the implementation of the US third quantitative easing policy.
"The appreciation of the rupiah in the past few days occurred not because of intervention from Bank Indonesia but has been driven by market mechanism," the bank governor, Darmin Nasution, said here on Monday.
He said the third quantitative easy policy from the US Federal Reserve has made dollar supply to increase to weaken its value.
The Fed in the middle of this month started implementing the policy by injecting US$40 billion a month to improve that country`s economy and reduce unemployment.
Darmin said the US policy plus good fundamentals of the Indonesian economy had made the rupiah to appreciate.
"The value of the quantitative easing this time is small and therefore its impact on other countries would be determined by the economic fundamentals of those countries and in Indonesia the fundamentals are good," he said.
Darmin predicts the market trend would continue to make the rupiah to strengthen.
On Monday the rupiah was traded at Rp9,450 per US dollar after weakening to Rp9,573 on Friday.(*)
Editor: Heru Purwanto
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