The rupiah exchange rate strengthened 44 points to IDR 15,848 from the previous closing level of IDR 15,892.
Director of PT.Laba Forexindo Berjangka Presidium Ibrahim Assuaibi explained that the rupiah might strengthen this time, at a time when the central banks of the states were all talking regarding the potential for dovishness or easing of their respective countries’ benchmark interest rates.
“The reason the Rupiah has strengthened is, firstly, even though Indonesia’s foreign exchange reserves have fallen, the decrease in cadev is due to intervention,” said Ibrahim, Friday (5/4).
Bank Indonesia intervened in the Domestic Non-Deliverable Forward (DNDF) market, in foreign exchange and bonds. So according to him it is natural that foreign exchange reserves are eroded.
However, he emphasized that the erosion of foreign exchange reserves is still good, and still strong enough for the next 3 months.
Also read: BI Records Rupiah Stable at IDR 15,320 per US Dollar This Week
The second reason, externally, the Japanese government will most likely make a policy so that the economy in Japan is better compared to the previous quarter which experienced a contraction.
Then the Bank of Japan will most likely raise their interest rates once more, even if only by 0.1%.
The third reason is that China’s manufacturing data is observed to be quite good in March 2024. So this indicates that China is likely to import more commodities, including from Indonesia, compared to previous months.
“That’s what makes the rupiah strengthen,” said Ibrahim. (Try/Z-7)
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