Rupiah May Extend Gain
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“Recent strengthening of the rupiah may open the opportunity for a rebound in the rupiah to extend its gain,” Reza said in a written statement on Tuesday, March 7, 2017.
Rupiah moved in the positive zone yesterday. It strengthened by 33 points or 2.5 percent to Rp13,350 per US dollar. Raza said that stronger rupiah was due to weaker US dollar as Asian currencies got stronger.
Rupiah has also strengthened as the Indian Ocean Rim Association (IORA) Summit takes place. The summit is expected to stimulate increase in foreign investment in Indonesia which may trigger economic growth and bolster foreign exchange reserves.
Rupiah remained strong despite negative sentiment over China who has cut its growth target for 2017, from 6.5-7.0 percent to 6.5 percent.
Questions & Answers
Q.What is the predicted range for the rupiah's movement according to the analyst?
What is the predicted range for the rupiah's movement according to the analyst?
Reza Priyambada predicts the rupiah will move around a support level of Rp13,385. The resistance level is expected to be Rp13,327, suggesting a potential further gain for the currency in the near future.
Q.What factors are contributing to the rupiah's recent strengthening?
What factors are contributing to the rupiah's recent strengthening?
The rupiah's recent strengthening is attributed to a weaker US dollar and stronger Asian currencies. The ongoing IORA Summit is also expected to stimulate foreign investment, further bolstering the currency and foreign exchange reserves.
Q.How much did the rupiah strengthen yesterday against the US dollar?
How much did the rupiah strengthen yesterday against the US dollar?
Yesterday, the rupiah strengthened by 33 points, which represents a 2.5 percent gain. It closed at Rp13,350 per US dollar, moving into the positive zone after its recent performance.
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