What about the Performance of Indonesias Rupiah in 2017?

Despite US dollar strength amid promised tax cuts in the USA and looming higher US interest rates, the Indonesian rupiah is not expected to depreciate as much as its Asian counterparts according to the DBS Bank. On Wednesday (01/03) the rupiah weakened 0.19 percent to IDR 13,363 per US dollar (Bloomberg Dollar Index). So far this year, however, the rupiah has strengthened nearly one percent against the greenback.

On Wednesday (01/03) market participants were careful ahead of the first speech of Donald Trump to US Congress. His speech did not, however, alter market sentiments in the remainder of the day.

Trump spoke about the renewal of the American spirit, a new chapter of American greatness, enforcing US immigration laws, while condemning recent vandalism, the Kansas shooting and hate crimes, as well as defending his decision to withdraw from the Trans-Pacific Partnership and to start working on a US-Mexico border wall. He further stated that he remains determined to scrap Obamacare and wants to invest heavily in infrastructure development. He also promised massive tax relief for the middle class, although he provided little specific details.

Trumps speech added few new information that could alter market sentiments on Wednesdays trading day and therefore the Indonesian rupiah changed little after Trumps speech.

Regarding the rupiahs performance in 2017 we expect the currency to depreciate toward the range of 13,700 - 13,900 per US dollar later this year due to several interest rate hikes in the USA, while US economic growth is also expected to accelerate due to Trumps fiscal incentives and rising government spending. The central bank of Indonesia (Bank Indonesia) is also expected to raise its interest rate regime in order to limit the negative impact of US monetary tightening.

However, the rupiah is supported by Indonesias improving economic fundamentals: economic growth is accelerating, inflation and the current account deficit are under control, while commodity prices (and thus Indonesias export performance) are improving. Therefore, rupiah depreciation will not be as sharp as the sliding of other Asian currencies.

Bank Indonesias benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.10 percent to IDR 13,361 per US dollar.

 

 

Source : Indonesia Investments

Dec 09, 2017

 


 
Bank note current rate:
  currency buy sell
GBP 18,300 18,530
AUD 10,550 10,670
HKD 1,651 1,708
USD 13,250 13,360
MYR 3,325 3,400
CAD 10,500 10,700
SGD 10,000 10,200
EURO 16,225 16,365
SFR 13,650 13,880
YEN 119.50 120.70
NZD 9,525 9,730
THB 405 427
NT 435 463
WON 11.59 12.75
DKK 2,068 2,195
SEK 1,580 1,660
BND 9,950 10,200
NOK 1,619 1,700
SAR 3,406 3,560
PHP 244 263
RMB 2,000 2,087
INR 159 209
RUB 178 235
AED 3,502 3,640
   Last Updated :22 Jan 2018 - 10:42 AM
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