Tuesday, 07 July 2020 | 21:53 WIB

Rupiah Strengthens to IDR14,150 on Thursday’s Trade Closing

Rupiah Strengthens to IDR14,150 on Thursday's Trade Closing (integritas)

JAKARTA, NETRALNEWS.COM - Rupiah exchange rate at the interbank level in Jakarta is closed higher on Thursday (10/10/2019) as market players were optimistic about the government, thus affecting the flow of foreign capitals back into the country.

The rupiah closed up 23 points or 0.16 percent to IDR14,150 per US dollar, as compared to the previous position of IDR14,173 per US dollar.

Director of PT Garuda Berjangka Ibrahim Assuaibi said on Thursday that surveillance carried out by the government and Bank Indonesia had made market participants optimistic that the issue of repatriation funds going abroad was a mere hoax issue.

"With an optimistic government belief, foreign capitals flow back into the domestic market so that the mix strategy undertaken by the Government and BI yields satisfying results, as rupiah is in the positive zone," Ibrahim said.

The government and Bank Indonesia are optimistic that repatriation funds amounting to IDR147 trillion will not run abroad, but the government will continue to monitor and be prepared if the funds flow abroad.

In addition, Indonesia Minister of Finance Sri Mulyani has held talks with fund owners, and is optimistic that the funds will still be invested domestically. Repatriated funds are said to have been mostly invested in various investment instruments both in foreign currencies and bonds or mortgage stocks.

Externally, market participants appear to be digesting all the reports about the possibility of an agreement at a meeting between US and Chinese officials.

In the morning the rupiah opened lower by IDR14,179. Throughout the day, the rupiah moved in the range of IDR14,142 to IDR14,180 per US dollar.

Meanwhile, Bank Indonesia's middle rate on Thursday showed that the rupiah weakened to IDR14,157 per US dollar, as compared to the previous day at IDR14,182 per US dollar.