The Indonesian rupiah strengthened against the United States (US) dollar in the Jakarta inter-bank market at the weekend, fueled by an increase in the countrys foreign exchange reserves. The rupiah rose 54 points, or 0.38 percent, to close at Rp14,101 per the US dollar on Friday, compared to Rp14,155 earlier.

Bank Indonesia (BI) announced earlier in the day the countrys .foreign exchange reserves increased US$500 million to $126.4 billion at the end of August 2019, from $125.9 billion a month earlier,

The foreign exchange reserves rose in August 2019 chiefly due to an increase in foreign exchange earnings from oil and gas and other foreign exchange earnings, Director of the BI Communication Department Junanto Herdiawan noted in an official statement released Friday.

The foreign exchange reserves are sufficient to finance imports for 7.4 months or imports and payments for the governments foreign debts for 7.1 months and exceed the international adequacy standard of some three months of imports.

The central bank believes that the foreign exchange reserves can support the resilience of the external sector and maintain macroeconomic stability and the financial system.

Looking ahead, BI was upbeat of the foreign exchange reserves remaining adequate, supported by better economic stability and prospect.

The rupiah opened higher at Rp14,140 per US dollar in the morning. Throughout the day, the rupiah hovered between Rp14,101 and Rp14,148.

According to the BI mid-rate, the rupiah strengthened at Rp14,140 on Friday compared to Rp14,153 earlier.

Source : Antara news.com

Sept 07, 2019