Bank Indonesia: Will allow rupiah to strengthen, USD/IDR hit 21-month lows
Bank Indonesia (BI), the Indonesian central bank, will allow the rupiah to strengthen in line with market movements, but will not target any level, said Nanang Hendarsah, executive director for monetary management at BI, told Reuters in a text message on Friday.
Hendarsah said: "will give room for the rupiah to strengthen along with market mechanisms. Fundamentally, the rupiah is not yet overvalued."
Foreign investors were undeterred by the global uncertainty tied to the US-Iran tension and were net buyers of 5.6 trillion rupiah ($407 million) of bonds from the secondary bond market on Thursday, he said.
Separately, BI Governor Perry Warjiyo noted “The gain in rupiah shows investor confidence in the government and Bank Indonesia policies. The central bank hasn’t seen any significant impact of the US-Iran conflict on the rupiah, but it will continue to monitor all global developments, including the signing of a trade deal between the US and China”.
In light of the above comments, the rupiah rallied hard and hit the highest levels seen since April 2018 vs. the US dollar at 13,744.5. At the press time, USD/IDR drops 0.60% to trade at 13,762.5.
- BI Survey: Indonesia's Retail Sales rise 1.3% YoY in Nov, Rupiah at 21-month highs
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.