Rupiah Hits 4-Week High after Moody’s Upgrades Indonesia View

Rupiah traded at Rp 13 873 per US dollar, its strongest position since January 12, 2017.

Jakarta, 12 Jumadil Awwal 1438/09 February 2017 (MINA) – Most Asian currencies edged higher against the dollar on Thursday, with the rupiah touching a four-week high after Moody’s Investors Service upgraded Indonesia’s credit rating outlook to “positive” from “stable”.

Earlier in the session, the rupiah touched 13,280 per dollar, its strongest level since Jan. 12. It ended 0.1 percent higher at 13,310.

The outlook upgrade by Moody’s late on Wednesday follows a similar move by Fitch in December.

“On a standalone basis, the shift in Moody’s outlook may not be of much impact given that they already have Indonesia’s credit rated above investment grade,” thestar.com quoted analysts at Citi as saying in a research note.

“Some investors may see this as increasing the probability of a rating upgrade by S&P… That may encourage better sentiment,” the analysts added.

S&P is the only major global ratings agency that still rates debt of Southeast Asia’s largest economy below investment grade, but analysts think it may soon join in.

Some major institutional investors require investment grade ratings from all three agencies to buy a country’s debt.

Most other Asian currencies edged higher against the dollar. (T/RS05/RS01)

Mi’raj Islamic News Agency (MINA)