Rupiah Strengthens 132 Points on Tuesday Evening

Jakarta, 26 Dzulhijjah 1437/28 September 2016 (MINA) – The Indonesian rupiah closed stronger against the dollar at 12,909 on Tuesday evening on the rising amount of redemption from the tax amnesty program, Antara reported, quoting a money market observer.

The rupiah rose 132 points compared to the previous close of 13,041 per dollar.

Money market observer Rully Nova of Bank Woori Saudara Indonesia Tbk said the rising redemption fund from the tax amnesty program was one of positive sentiments for the local unit to continue its rally against the dollar.

“The sentiment towards the tax amnesty program has helped strengthen the rupiah while money market players are anticipating political condition in the US ahead of presidential election there,” he said.

Data from the Directorate General of Taxation show that the total amount of assets declared as of September 27 reached Rp2,141 trillion comprising Rp1,653 trillion worth of declared domestic assets, Rp637 trillion worth of declared foreign assets and Rp125 trillion worth of repatriation fund.

After all, he said the rupiahs appreciation was relatively limited, with Bank Indonesia expected to prevent it from disrupting the countrys export.

“The rupiah will be safeguarded according to its fundamentals,” he said.

On the external side, the US presidential debate had caused market players to exercise caution in accumulating US dollar-denominated assets, he said.

“The accumulation of sentiments towards the Federal Reserve maintaining its benchmark rate and the political condition ahead of presidential election has caused the dollar to weaken,” he said. (T/R07/R01)

Mi’raj Islamic News Agency (MINA)