The BI governor noted here on Friday that the rupiah appreciation was only temporary since the possibility remains that the US government could still reduce its monetary stimulus.Jakarta (ANTARA News) - Bank Indonesia (BI) and the government must remain alert even though the rupiah has started appreciating against the US dollar over the past few days, BI Governor Agus Martowardojo said.
The BI governor noted here on Friday that the rupiah appreciation was only temporary since the possibility remains that the US government could still reduce its monetary stimulus.
"So, we must remain alert and monitor the development carefully. Bank Indonesia is committed to monitoring the situation and responding to any developments," he asserted.
Agus claimed the rupiah exchange rate was still within the expected range, saying BI would remain on guard to ensure the stability of the rupiah.
On Friday morning, the rupiah strengthened by another 25 points to Rp11,100 from Rp11,125 the day before.
The depreciation of the US dollar against most Asian currencies will contribute to stabilizing the rupiah exchange rate, but pressure from increasing demand for imports as the end of the month approaches usually leads to a short-term weakening of the rupiah, he explained.
External sentiment for the US dollar remains negative, so most of the world`s currencies, including the rupiah, are expected to strengthen.
The US dollar is expected to continue its decline over the long term because the US economy has not yet stabilized following the recent government shutdown.(*)
Editor: Heru Purwanto
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