Indonesian Rupiah showed its might against US Dollar today by soaring above other Asian currencies. (Image via: CNBC)

Reaching Rp14,130, Rupiah Reigns over Asia

Alfonsus Adi Putra
Market & Investment
Foreign Exchange & Interest Rate
Jun 21, 2019
2046
Indonesian Rupiah (IDR) once again showed its might over foreign exchange, by strengthening to Rp14,130 per US Dollar (USD) by Friday (21/6) morning. The figure strengthened 0.37% compared to Thursday, Rp14,182 per USD. By this figure, IDR stands as the strongest currency over Asia.

Today, the table turned against Thailand Baht (THB) and Japanese Yen (JPY) who dropped 0.01% and 0,02% respectively. Malaysian Ringgit (RM) and South Korean Won (KRW) also had to experience another drop by 0.13% and 0.16% respectively.

Meanwhile, strengthening was also shown by Singaporean Dollar (SGD) Hong Kong Dollar (HKD) and Philippines Peso (PHP) by 0.01%, 0.07%, and 0.08% respectively.

Head of Research at Monex Investindo, Ariston Tjandra, stated that there are 2 contributors to the strengthening of IDR. First, the strengthening was predicted due to the decision from The Federal Reserve to keep the benchmark fund rate ranging from 2.25% to 2.5%.

Since the Federal Reserve claimed that there were possibilities that the benchmark fund rate could decline in the upcoming 2nd semester, it signals that the chance for investment in Indonesia is still open.

Second was due to the result of BI’s Board of Governor’s (BOG) Meeting on Thursday. The central bank of Indonesia still struggles to preserve Indonesian’s economy by cutting minimum statutory reserve by 50 base points for conventional and sharia banks.

The cutting of minimum statutory reserve affects credit distribution which leads to economic growth.

Source: https://www.cnnindonesia.com/ekonomi/20190621083318-78-405154/tembus-rp14130-rupiah-duduki-peringkat-pertama-di-asia

Economy , Politics , Foreign-Exchange , Indonesia , IDR , US , USD , Bank-Indonesia