Friday, 17 Augst 2018 | 02:58 WIB

Rupiah Appreciates to IDR14,426 on Friday Morning

Illustration: Rupiah and dollar banknotes

JAKARTA, NNC - The rupiah exchange rate transacted between banks in Jakarta on Friday (08/10/2018) morning moved up by six points to IDR14,426 compared to previously IDR14,432 per US dollar.

CSA Research Institute senior analyst Reza Priyambada said on Friday that the movement of the rupiah exchange rate was helped by a number of sentiments from within the country including an extension of the agreement to extend the cooperation of the Bilateral Local Currency Swap Arrangement (BCSA) between Bank Indonesia and the Reserve Bank of Australia.

"The cooperation between the two central banks can reduce the dependency on the US dollar, so that the rupiah is expected to be more secure in the future," he said.

In addition, he continued, the signing of Government Regulation (PP) Number 37 Year 2018 on Tax Treatments and Non-Tax State Revenues (PNBP) in the mineral mining business by the Government added to the positive sentiments for the domestic currency.

"It is hoped that positive sentiments from within the country will offset global sentiments," he said as quoted from Antara.

On the other hand, he continued, news of the announcement of candidate pairs of president and vice president helped reduce speculations on the domestic financial market.

"Political uncertainty is at least slightly reduced after the announcement of the presidential candidates and their companions. Market participants are expected to keep a close watch on various sentiments that could weaken the rupiah," he said.