The rupiah strengthens the position of 14.383 IDR for one US dollar, it is the support

JAKARTA, KOMPAS.com – During Thursday's trading (29.11.2018), in the Bloomberg spot market, the exchange rate of the rupee increased by 1.01% to reach the level of 14 383 rupees to the dollar compared to the close of yesterday at 14,529. Today, the rupiah has even soared to reach the position of 14,340 rupees to a US dollar.

The rupee also recorded the second largest gain this month with an appreciation of 5.70% (mtd).

While the reference rate of the Jakarta (Jisdor) interbank dollar spot exchange rate, the rupee was in the position of 14,408 Rp. Per US dollar, up 0.87% from 14,535 yesterday.

The chief economist of the Permata Bank, Joshua Pardede, said the strengthening of the rupiah today was supported by comments from US central bank governor Jerome Powell on Wednesday night (11/28/2018 ), the US key rate being almost close to its normal level.

"This indicates that the Fed's benchmark interest rate increase next year is lower than the previous estimate of 3 times 25 basis points to increase only 1 to 2 times, "said Joshua Kompas.com, Thursday (29/11/2018) night.

Read also: Faisal Basri: Rupiah does not get stronger because of our sweat …

Comment dovish Jerome Powell has encouraged the weakening of the US dollar against most developed and developing country currencies. In addition, the downward trend in world oil prices by 34% from October's peak of about $ 50 per barrel has also reduced the pressure of the oil importer's currency.

"The positive sentiment towards emerging market financial markets has pushed foreign funds into the domestic financial market where this month has unfolded." net purchase "659 million US dollars on the stock market and an increase of 2.05 billion dollars in foreign holdings of public securities (SBN)," said Joshua.

He further explained that the strengthening of the rupee in recent weeks was also supported by the Bank of Indonesia's preventive policy measures, which had raised the benchmark interest rate in the DGR in November. In addition, the decision of the Ministry of Finance to cancel the last four SUN and SNSN auctions at the end of this year encouraged the strengthening of SBN prices in the secondary market.

"Even in this case, market players should always anticipate the negotiation process to impose US government import duties on Chinese products to be held at the G20 summit in Argentina in the coming days, this which could affect the movement of the US dollar against global currencies, "he said.