Today, Bloomberg reported that official data show that “global funds pumped 3.39 trillion rupiah (USD $294 million) into local-currency sovereign notes in the first two days of this week, taking holdings to a record IDR 376.28 trillion. These inflows occurred as previous forecasts for April inflation and the March trade balance were optimistic.

Furthermore, the US Federal Reserve announced on Wednesday 30 April 2014 that the institution will maintain a benchmark rate close to zero for a “considerable time” after the bond-buying program (quantitative easing) ends. It further said that monthly bond purchases have been cut to USD $45 billion, its fourth consecutive USD $10 billion cut. It is expected that the Fed will continue to curb its bond-buying program gradually. This context, particularly the low interest rates in the US and Europe, is considered ‘good’ for emerging market currencies, including the Indonesian rupiah.

Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.04 percent to IDR 11,537 against the US dollar on Friday (02/05).

| Source: Bank Indonesia