The Indonesian rupiah appreciated markedly in January 2019, and reached its strongest level since the end of June last year. The benchmark JISDOR rate of Bank Indonesia ended the first month of 2019 at IDR 14,072 per US dollar, strengthening from the level of IDR 14,481 per US dollar at the last trading day of 2018. Or, in other words, the rupiah managed to appreciate 2.82 percent against the greenback in the first month of 2019.
Meanwhile, based on other rupiah-US dollar currency quotes, the rupiah had actually fallen below the IDR 14,000 per US dollar boundary on 31 January 2019, a level that is often labeled a ‘psychological level’ and therefore – technically – opens room for further rupiah appreciation.
There is a range of factors – both external and domestic ones - behind this positive performance of the rupiah, an emerging market currency that was among the worst performers in 2018.
Poll Indonesia Investments:
This articles discusses:
• the domestic and international factors that impacted on the performance of the rupiah
• the central bank's view of the current rupiah rate
Read the full article in the January 2019 edition of our monthly research report. You can purchase the report by sending an email to email@example.com or a WhatsApp message to the following number: +62(0)8788.410.6944