Rupiah strengthens to 13,045 as of Monday afternoon
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The interbank exchange rate of rupiah in Jakarta moved higher by 23 points, reaching 13,045 rupiah per one US dollar compared to 13,068 rupiah previously.
“Rupiah strengthened against US dollar in line with the growth indicated in the just released domestic economy data,” said Woori Saudara Indonesia Tbk money market watcher Rully Nova in Jakarta on Monday.
According to the Central Bureau of Statistics, Indonesias economy experienced a 5.02 percent growth in the third quarter of 2016, thus reflecting that the cumulative growth has reached 5.04 percent by the third quarter of the year.
The strengthening of the domestic currency has a lot to do with the market players confidence in Indonesias economy amid an uneven global economic scenario, spurring an interest in assets with rupiah denomination.
At the same time, Nova believed the strengthening of the currency was still relatively limited, corresponding with commodity prices, especially the worlds crude oil price which is still at US$50 per barrel, indicating the psychological level of investors.
The WTI Crude Oil was at US$44.76 per barrel as of Monday evening, while Brent Crude Oil was at US$46.11 per barrel.
“The crude oil prices are expected to show an upward trend, sustaining rupiahs fluctuation in a positive area,” he noted.
Meanwhile, Indonesias Central Bank recorded on Monday that rupiahs the middle exchange rate moved higher to 13,082, compared to 13,103 on Friday.
Questions & Answers
Q.What was the previous interbank exchange rate of the rupiah against the US dollar before it strengthened?
What was the previous interbank exchange rate of the rupiah against the US dollar before it strengthened?
Before the rupiah strengthened to 13,045 per US dollar, its interbank exchange rate stood at 13,068 rupiah. This indicates a rise of 23 points for the currency.
Q.What is considered to be the psychological level for investors regarding crude oil prices?
What is considered to be the psychological level for investors regarding crude oil prices?
The psychological level for investors is indicated by crude oil prices around US$50 per barrel. This benchmark is relevant to the limited strengthening of the rupiah, according to Rully Nova.
Q.How much did Indonesia's economy grow in the third quarter of 2016?
How much did Indonesia's economy grow in the third quarter of 2016?
Indonesia's economy experienced a 5.02 percent growth in the third quarter of 2016. This pushed the cumulative growth for the year to 5.04 percent by the end of that quarter, according to the Central Bureau of Statistics.
Q.What was the middle exchange rate recorded by Indonesia's Central Bank on Monday?
What was the middle exchange rate recorded by Indonesia's Central Bank on Monday?
On Monday, Indonesia's Central Bank recorded the middle exchange rate for the rupiah at 13,082. This was an increase compared to the 13,103 recorded on the previous Friday.
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