Rupiah strengthens 26 points on optimism about US-China trade agreement

Jakarta (ANTARA News) – The Indonesian rupiah rose 26 points to close at Rp13,992 per US dollar in the Jakarta inter-bank market on Tuesday evening on investors optimism about the US-China trade agreement, a market analyst said.

“Optimism about the US-China trade negotiations has encouraged investors to invest in risky assets,” President Director of PT Garuda Berjangka, Ibrahim Assuaibi, said in Jakarta on Tuesday.

US President Donald Trump announced earlier that he would postpone raising tariffs for Chinese imported goods on March 1, 2019, and planned to hold a summit meeting with Chinese President Xi Jinping in Florida to conclude an agreement on assumption that trade talks made additional progress.

In addition, the decline in global crude prices also brought about a positive sentiment to the rupiah, he noted.

“The drop in global crude prices has an impact on the import of fuel oils, making their prices lower. Consequently, it has an impact on Indonesias trade balance,” he added.

The rupiah strengthened at Rp13,977 per dollar in the morning trade. Throughout the day, it moved in the range of Rp13,976 to Rp14,005 per dollar.

According to the Bank Indonesia (BI) mid rate on Tuesday, the rupiah strengthened to Rp13,990 per dollar compared to the previous close of Rp14,007 per dollar.

Source: Antara News