Rupiah strengthens Wednesday afternoon

JAKARTA. The rupiah exchange rate strengthened on Wednesday afternoon by 2 points from Rp 12,197 per US dollar from Rp 12,199.

“The rupiah exchange rate shown stable movements with a strengthening trend after Indonesian economic data released recently was considered positive by market players,” Bank Himpunan Saudara market analyst, Rully Nova, said in Jakarta on Wednesday as quoted by Antara news agency.

He said the release of data on domestic inflation in January, which stood at 8.2 percent, a year-on-year decline; Indonesia’s trade surplus of US$1.5 billion for the period of December 2013; and the country’s economic growth which stood at 5.78 percent in 2013 influenced the rupiah’s current trend.

Rully said Bank Indonesia (BI), which continued to carry out its policy to maintain sustainable economic stability, could further push up the rupiah.

According to Rully, positive domestic sentiments could balance external factors, which were negative, following circulating information saying that the US Federal Reserve (Fed) would tapper off its financial stimulus more aggressively.

BI’s median rate on Wednesday reported that the rupiah strengthened to Rp 12,172 per US dollar from Rp 12,248 on Tuesday. (ebf)