The political tension in Ukraine prompted investors to find safe assets, including precious stones, putting pressure on the dollar, Ariston Tjendra, chief researcher of Monex Investindo Futures, said here on Friday.
The rupiah traded at Rp11,597 against the dollar on Thursday.
"The geopolitical factor may also dent optimism about economic growth in the United States," he said.
In general, the dollar also weakened against other major global currencies, he added.
"Previously, the dollar had continued its rally against other major global currencies after the US data on durable goods orders in March was better than expected," he said.
Yet, the rupiahs strengthening was limited as corporates and expatriates demand for the dollar remained high, he remarked.
"Expatriates demand for the dollar is expected to increase before mid-year," he said.
According to Bank Indonesias mid-rate on Friday, April 25, the rupiah strengthened to Rp11,601 per dollar from the previous close of Rp11,608 per dollar. (*)
Editor: Heru Purwanto
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