Rupiah exchange rate inches closer to Rp14,000 per US dollar

Jakarta (ANTARA) – The Indonesian rupiah inched close to Rp14 thousand per US dollar in the Jakarta interbank market, Monday morning, prior to the nation’s trade balance being announced in the afternoon.

The Indonesian currency surged 54 points, or 0.38 percent, to Rp14,066 per dollar as compared to Rp14,120 per dollar earlier.

Samuel Aset Manajemen economist Lana Soelistianingsih noted that the Central Statistics Agency’s (BPS’) expected announcement of a positive trade balance on Monday afternoon had led to the rupiah performing well against the US dollar.

“The March 2019 trade deficit, to be announced on Monday, will perhaps narrow,” she remarked.

Soelistianingsih explained that the US export and imported goods’ prices had risen in the face of the United States and China sketching the outlines of a deal to put an end to the trade war.

The US export price index increased 0.7 percent month-to-month (mtm) for March 2019, surpassing market expectations of 0.2 percent. The rise was chiefly attributed to the escalating prices of non-farm and agricultural commodities. In the meantime, the import price index shot up 0.6 percent mtm, exceeding market expectations of 0.4 percent. The rise was specifically from crude prices.

Soelistianingsih believes the rupiah’s movement will remain slow to lie in Rp14,120-Rp14,150 per US dollar range.

By 10:05 a.m. local time, Monday, the rupiah shored up 54 points, or 0.30 percent, to Rp14,066 per dollar in comparison with Rp14,120 per US dollar previously.

According to Bank Indonesia’s mid-rate on Monday, the rupiah appreciated to Rp14,067 per US dollar as against its previous value of Rp14,153 per US dollar. EDITED BY INE

Source: ANTARA News