- The rupiah strengthened to Rp16,784 per U.S. dollar, supported by weaker U.S. economic data and Bank Indonesia’s proactive intervention measures aimed at maintaining currency stability.
- Indonesia’s rupiah gained momentum on Monday as soft U.S. economic indicators and steady domestic fundamentals lifted investor confidence in the local currency.
- Weaker U.S. economic data and Bank Indonesia’s ongoing commitment to currency stabilization helped the rupiah appreciate, signaling growing optimism about Indonesia’s financial resilience.
The rupiah opened stronger on Monday morning in Jakarta, appreciating 36 points or 0.21 percent to Rp16,784 per U.S. dollar from its previous close of Rp16,820.
According to Lukman Leong, currency analyst at Doo Financial Futures, the rupiah’s recent gains were largely influenced by weaker-than-expected U.S. economic data.
Recent data showed the U.S. Purchasing Managers’ Index (PMI) at 51.9, below the estimated 52. Meanwhile, U.S. consumer inflation expectations fell to 4 percent, undershooting earlier forecasts of 4.2 percent.
Beyond external factors, the rupiah also drew support from Bank Indonesia’s (BI) firm commitment to stabilizing the currency. “BI typically intervenes in the spot, bond, and non-deliverable forward (NDF) markets,” said Lukman.
Earlier, BI Governor Perry Warjiyo reiterated the central bank’s readiness to defend and strengthen the rupiah through aggressive interventions in offshore NDF, domestic NDF (DNDF), and spot markets.
Bank Indonesia remains optimistic that the rupiah will stay stable with a strengthening bias, supported by attractive yields, low inflation, and positive economic growth prospects.
The currency’s resilience is further underpinned by Indonesia’s ample foreign exchange reserves, which provide sufficient buffer to maintain exchange rate stability. Analysts expect the rupiah to trade between Rp16,750 and Rp16,900 per U.S. dollar in the near term.
Indonesianpost.com | Kabarin
