Rupiah Strengthens to 13,896 Per Dollar

Jakarta , MINA –The rupiah rose 97 points to close at Rp13,896 per dollar in the Jakarta inter-bank market on Thursday evening after it traded at Rp13,993 earlier, Antara News reported.

The positive domestic sentiment influenced the rupiah`s appreciation, said market analyst M Nafan Aji Gusta of Binaartha Sekuritas.

“Market agents have lauded Bank Indonesia (BI)`s step to raise its 7 Days Reverse Repo Rate by a total of 50 basis points this month. Right now the BI`s step is considered quite proper,” he said.

He said the global condition had also become increasingly conducive so that it putno pressure on the Rupiah.

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“The political crisis in Italy has begun to ease now. Meanwhile, sentiment on the Fed Rate hike has also shown signs of somewhat abating, although it is predicted to increase next month,” he said.

According to the Bank Indonesia mid rate on Thursday, the rupiah strengthened to Rp13,951 per dollar as compared to Rp14,032 earlier.

On Wednesday (May 30), BI once again raised its key interest rate by 25 basis points to 4.75 per cent during its extra meeting of the board of governors to anticipate external risk, particularly an expected second rise in the Fed Rate on June 13, 2018.

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The BI Governor, Perry Warjiyo, said the hike of the BI key rate was a preemptive act against external risks and pressure. (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)