JAKARTA (Yosefardi) – The central bank, Bank Indonesia (BI), said the rupiah appreciation continued in line with the promising domestic economic outlook and easing external risks.
In the second quarter of 2016, the rupiah appreciated by an average of 1.59% to close at a level of Rp13,313 per US Dollar. This morning the rupiah appreciated 0.02% to Rp13,160 per dollar.
Rupiah momentum persisted into July 2016, gaining a further 1.72% to close at Rp13,112 per US dollar. Domestically, rupiah appreciation was supported by the encouraging domestic economic outlook in line with a maintained macroeconomic stability, alongside the recently enacted Tax Amnesty.
In terms of the external sector, rupiah appreciation was driven by less risk on global financial markets due to the limited impact of the Brexit and the expected postponement of the next inevitable Federal Funds Rate (FFR) hike.