Rupiah Climbs on Forex Reserves Increase

The rupiah climbed 20 bps this morning at the Jakarta Interbank Spot Dollar Rate. The rupiah now trades for Rp13,278 per US dollar, from what analysts said to be the impact of Indonesia’s foreign exchange (forex) reserves’ increase.

Samuel Sekuritas economist Rangga Cipta said on Friday, June 9, that the forex reserve increase in May to US$124.95 billion helped the rupiah strengthened. But the gain is relatively limited as the US dollar is also on an uptrend over speculations that the Federal Open Meeting Committee will result in a Fed Fund Rate hike.

Meanwhile, money market observer from Bank Woori Saudara Indonesia, Rully Nova, said the forex increase is expected to help maintain the rupiah stability on the long run.

“With stable fluctuations, the domestic economic activities will be able to increase, and eventually provide investors’ with comfort and security when making investments,”