Currency News: Indonesias Rupiah Appreciating Sharply vs US Dollar

The Indonesian rupiah is appreciating sharply on Thursday (05/01) as the US dollar retreats from its (near) 14-year peak against a basket of major global currencies ahead of the release of the US Federal Reserves December policy meeting minutes. Based on the Bloomberg Dollar Index, the rupiah had strengthened 0.83 percent to IDR 13,328 per US dollar by 14:00 pm local Jakarta time on Thursday (05/01). Particularly the unexpected fall of the US dollar against Chinas yuan spooks market players.

Over the past two trading days Chinas yuan actually weakened sharply against the US dollar, touching two-month lows, amid capital outflows from China. However, when the yuan suddenly appreciated against the US dollar on Thursday (05/01), market players rushed to buy the yuan as well as several other key currencies such as Japans yen and the euro.

Investors are also engaging in profit-taking after the two-month rally of the US dollar that came on the back of Donald Trumps victory in the 2016 US presidential election in early November 2016. Due to Trumps plans to cut taxes, boost fiscal spending and become more protectionist in terms of trade, US inflation is expected to rise, while US bond yields are lifted.

Positive domestic macroeconomic data in Indonesia also supports the rupiahs performance today. Indonesias full-year 2016 inflation was low at 3.02 percent (y/y), while the budget deficit (realization) is estimated to remain slightly below 2.5 percent of Indonesias GDP in 2016.

Meanwhile, Bank Indonesias benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) appreciated 0.80 percent to IDR 13,380 per US dollar on Thursday (05/01). Due to positive recent economic data (including manufacturing activity in the USA, China and Europe) markets are on risk-on mode overall.

 

Source : Indonesia Investments

Jan 07, 2017


 
Bank note current rate:
  currency buy sell
GBP 17,775 17,990
AUD 10,150 10,315
HKD 1,676 1,732
USD 13,350 13,530
MYR 3,225 3,285
CAD 10,450 10,635
SGD 9,875 10,060
EURO 15,850 16,040
SFR 13,575 13,785
YEN 119.50 121.55
NZD 9,125 9,315
THB 401 422
NT 431 459
WON 11.59 12.75
DKK 2,033 2,155
SEK 1,553 1,630
BND 9,825 10,060
NOK 1,581 1,665
SAR 3,451 3,610
PHP 248 267
RMB 1,971 2,053
INR 161 209
RUB 180 231
AED 3,549 3,685
   Last Updated :24 Nov 2017 - 04:56 PM
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