Sunday, 20 June 2021 | 23:33 WIB

Rupiah Strengthens While Dollar Plunges as The Fed Shows Dovish Stance

Illustration: Rupiah and Dollar (klikkalbar)

JAKARTA, NETRALNEWS.COM - The exchange rate of rupiah against the US dollar moved higher in early trading opening on Monday (11/27/2017).

The rupiah currency was traded up 21 points to IDR13,490 compared to the previous position of IDR13,511 per US dollar.

"The US dollar remains in a weakening area, some investors responded negatively to minutes of The Fed's latest meeting showing dovish stance on its monetary policy," Binaartha Securities analyst Reza Priyambada said in Jakarta on Monday.

Market participants believe The Fed Fund Rate hike potential in December is quite open, but interest rate hikes in 2018 remain in doubt as US inflation still has tendency to be flat.

"Concerns about US inflation hinted that a rate hike in 2018 will not be aggressive," he said.

The movement of the US dollar which tends to weaken in the global market provides an opportunity for the rupiah to continue its appreciation.

"Moreover, the national economic condition is relatively favorable although being overshadowed by the state revenue that is still below target," he said.