JAKARTA. Finance Minister Bambang Brodjonegoro said that the rupiah exchange rate against the US dollar could remain in a safe position despite ongoing external pressures related to the US Federal Reserve’s (Fed) policy normalization plan. “We will always keep on guard against external pressures toward the rupiah because one of the pillars of our economic resilience is the [stability] of the rupiah exchange rate. We hope Bank Indonesia [BI] can safeguard the rupiah to stay at a safe position. The most important thing is, rupiah should not be either too ‘undervalued’ or ‘overvalued,’” he said as quoted by Antara news agency on Tuesday. The minister was speaking to journalists in an event in Jakarta on Monday. Bambang said that the current global trend of dollar strengthening was caused by circulating signals that the Fed’s fund rate adjustment might occur ahead of the end of this year. Currently, investors were anticipating such a possibility, he added.
Rupiah expected to stay safe despite pressures
JAKARTA. Finance Minister Bambang Brodjonegoro said that the rupiah exchange rate against the US dollar could remain in a safe position despite ongoing external pressures related to the US Federal Reserve’s (Fed) policy normalization plan. “We will always keep on guard against external pressures toward the rupiah because one of the pillars of our economic resilience is the [stability] of the rupiah exchange rate. We hope Bank Indonesia [BI] can safeguard the rupiah to stay at a safe position. The most important thing is, rupiah should not be either too ‘undervalued’ or ‘overvalued,’” he said as quoted by Antara news agency on Tuesday. The minister was speaking to journalists in an event in Jakarta on Monday. Bambang said that the current global trend of dollar strengthening was caused by circulating signals that the Fed’s fund rate adjustment might occur ahead of the end of this year. Currently, investors were anticipating such a possibility, he added.