JAKARTA. Rupiah finally left psychological level of IDR13,000 per US$1, as rupiah strengthened the most since May 2015, while rupiah to US dollar spot rate closed at IDR12.955 per US dollar on Tuesday (27/9). On the same day, rupiah to US dollar spot rate had even once hit IDR12,886 per US dollar. Since the beginning of 2016, rupiah has strengthened by 6.04%. However, some analysts predicted that the strengthening of rupiah may not last in the long run. Analyst at Bank Mandiri Rini Eka Putri said that the rupiah strengthening was driven by The Fed or American Central Bank’s decision to maintain its interest rate at the level of 0.25%-0.50%. The strengthening was also caused by The Fed’s decision to revise the plan for raising the interest rate in 2017 from three times to two times. The strengthening of rupiah was also driven by several domestic factors, such as BI or Central Bank’s decision to cut 7-days reserve repo rate to 5%. After the rate cut, BI’s interest rate is still higher and attractive compared to low, even negative interest rate in other countries.
Rupiah left IDR13,000 zone
JAKARTA. Rupiah finally left psychological level of IDR13,000 per US$1, as rupiah strengthened the most since May 2015, while rupiah to US dollar spot rate closed at IDR12.955 per US dollar on Tuesday (27/9). On the same day, rupiah to US dollar spot rate had even once hit IDR12,886 per US dollar. Since the beginning of 2016, rupiah has strengthened by 6.04%. However, some analysts predicted that the strengthening of rupiah may not last in the long run. Analyst at Bank Mandiri Rini Eka Putri said that the rupiah strengthening was driven by The Fed or American Central Bank’s decision to maintain its interest rate at the level of 0.25%-0.50%. The strengthening was also caused by The Fed’s decision to revise the plan for raising the interest rate in 2017 from three times to two times. The strengthening of rupiah was also driven by several domestic factors, such as BI or Central Bank’s decision to cut 7-days reserve repo rate to 5%. After the rate cut, BI’s interest rate is still higher and attractive compared to low, even negative interest rate in other countries.