Friday, 03 April 2020 | 14:54 WIB

Rupiah Rises as Majority of Asian Regional Currencies Weaken

Rupiah Rises as Majority of Asian Regional Currencies Weaken (katadata)

JAKARTA, NETRALNEWS.COM - Rupiah exchange rate at the interbank level in Jakarta is closed stronger on Friday (01/24/2020), amid the weakening of the majority of Asian regional currencies.

The rupiah was closed rising 56 points or 0.41 percent to IDR13,583 per US dollar, as compared to the previous day's position of IDR13,639.

"The yield of US bonds that is still at a low level helps strengthen the rupiah against the US dollar," said Head of Research at Monex Investindo Futures Ariston Tjendra in Jakarta.

Currently, US bond yields are in the range of 1.74 percent after touching the range of 1.71 percent yesterday, the lowest level since December 5, 2019.

Ariston continued that Bank Indonesia's stance that did not hold back the strengthening of the rupiah and also the improved December trade balance also helped to strengthen the rupiah.

Bank Indonesia (BI) kept the BI 7-Day Reverse Repo Rate (BI7DRR) interest rate at 5 percent, with a Deposit Facility interest rate of 4.25 percent, and a Lending Facility interest rate of 5.75 percent.

BI adopted a monetary policy that remained accommodative and consistent with controlled inflation forecasts within the target range, kept external stability, and efforts to maintain the momentum of domestic economic growth.

Next week, the possibility of the rupiah to continue to increase is still open in the range of IDR13,540-IDR13,500 per dollar.

In the morning, the rupiah opened higher at IDR13,637 per dollar. Throughout the day, the rupiah moved in the range of IDR13,577 to IDR13,643 per dollar.

Meanwhile, Bank Indonesia's middle rate on Friday showed that the rupiah weakened to IDR13,632 per dollar, as compared to the previous day of IDR13,626.