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 18,425 18,650
AUD 10,500 10,675
HKD 1,650 1,710
USD 13,200 13,365
MYR 3,325 3,400
CAD 10,500 10,710
SGD 9,975 10,200
EURO 16,175 16,350
SFR 13,650 13,875
YEN 118.50 120.65
NZD 9,575 9,775
THB 407 427
NT 439 464
WON 11.79 12.50
DKK 2,072 2,195
SEK 1,582 1,665
BND 9,925 10,200
NOK 1,614 1,700
SAR 3,402 3,565
PHP 243 262
RMB 1,998 2,088
INR 159 210
RUB 178 236
AED 3,498 3,640
   Last Updated :23 Jan 2018 - 04:59 PM
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