Rupiah appreciates to 12,090 per dollar at close

JAKARTA. The rupiah interbank trade rate in Friday’s closing session appreciated by 170 basis points to Rp 12,090 per US dollar as market players saw better political conditions in the country ahead of the inauguration of president-elect Joko “Jokowi” Widodo.

"The meeting between Jokowi and his rival during the presidential election, Prabowo Subianto, in the morning [on Friday] created positive sentiment in the investment market,” PT Platon Niaga Berjangka analyst Lukman Leong said, as quoted by Antara news agency.

He said that the new government would be monitored closely by investors throughout next week since the new Cabinet would be announced.

He said, however, political sentiment would not create a long-term impact since market players were also paying attention to the global economic condition, which was forecast to continue slowing down.

“The global economic downturn will impact on the domestic market badly,” he added.

Meanwhile, Bank Indonesia’s mid rate data showed that the domestic currency was traded at Rp 12,222 per dollar, down from Rp 12,207 per dollar.