Thursday, 23 May 2019 | 13:40 WIB

Rupiah Grows Stronger against Dollar on Higher Global Oil Prices

Rupiah Banknotes

JAKARTA, NETRALNEWS.COM - On trade opening, Wednesday (10/18/2017), the rupiah exchange rate moved up against the US dollar.

This morning, the rupiah currency strengthened 28 points to IDR13,479 compared to previous position of IDR13,507 per US dollar.

"Rising oil prices, plus positive sentiments from Asian currencies, are among the factors that sustain the rupiah," said Binaartha Sekuritas Reza Priyambada analyst in Jakarta.

Rising commodity prices, including crude oil, are among the positive factors for the rupiah advancement against the dollar.

Prices of WTI Crude oil rose 0.52 percent to $52.15 a barrel, and Brent Crude oil rose 0.73 percent to $58.30 a barrel.

Nevertheless, according to him, the advancement of the rupiah is relatively limited following the emergence of news in the market that the Federal Reserve (The Fed) candidate substitute Janet Yellen, i.e., John Taylor is likely to be hawkish or support the US interest rates hike.

Market speculation about Trump who will choose John Taylor as a candidate for the Fed chair helped spark demand for dollar-denominated assets rising and boosting US bond yields.