Rupiah appreciates against US dollar over allaying fears

Human Rights

Jakarta (ANTARA) – The rupiah strengthened to Rp14,352 per US dollar, Monday morning, 40 points, or 0.28 percent stronger than Rp14,392 in the Jakarta inter-bank market, as investors’ concerns eased following protests against the presidential election results.

Economist Lana Soelistianingsih of Samuel Aset Manajemen remarked in Jakarta on Monday that investors were worried over the rally in front of the Election Oversight Body (Bawaslu) in Central Jakarta on May 22-23 to express rejection to the presidential election results that had taken a violent turn.

“It appears that investors did not panic too much in response (to the rally) despite it leading to a decline in the share composite index (IHSG) and the weakening of the rupiah. However, the decrease was not too much and did not last that long. It seems that investors remained neutral without harboring too much concerns,” she noted.

The Prabowo-Sandi pair took the decision to lodge a case of alleged fraud in the presidential election in the Constitutional Court, ending 48 hours of rioting across Jakarta last week.

The Constitutional Court will take a decision on the lawsuit against the presidential election results on June 28 this year.

On an external side, global sentiments showed an improvement over the weekend after US President Donald Trump on Thursday (May 23) made a statement that negotiations on the US-China trade war would be completed in the near future.

Source: Antara News