The rupiah strengthened supported by the flow of investor funds to SBN

The rupiah exchange rate moves in the range of Rp. 14,600 per US dollar to Rp. 14,800 per US dollar

Jakarta ( – The rupiah exchange rate (exchange rate) transacted between banks in Jakarta on weekends has the potential to strengthen supported by the inflow of investor funds into state securities (SBN).

On Friday morning, the rupiah rose 13 points or 0.09 percent to the position of IDR 14,694 per US dollar compared to the position at the close of the previous trade of IDR 14,707 per US dollar.

“The rupiah still has the potential to strengthen due to positive sentiment from inflows of investors into SBN,” said DCFX Futures analyst Lukman Leong in Jakarta, Friday.

Lukman said the positive sentiment of investor funds coming into SBN was due to optimism about the Indonesian economy with expectations of relatively strong economic growth, relatively high yields and hopes for an increase in foreign exchange reserves by the revision of Government Regulation Number 1 of 2019 on Export Proceeds.

Bank Indonesia (BI) recorded foreign capital inflows in the form of portfolio investment in the first quarter of 2023 which recorded net inflows 4.7 billion US dollars.

Foreign capital inflows into portfolio investment continued in April 2023 which until April 14, 2023 recorded net inflows 1.2 billion US dollars.

In addition, in 2023 the domestic economy is likely to grow upwards according to BI’s projection in the range of 4.5 percent (year on year/yoy) to 5.3 percent (yoy) or to be precise, it is likely to be around 5.1 percent (yoy).

This economic growth was supported by stronger private consumption, stronger export performance, and good investment, especially non-construction.

However, Lukman said the strengthening of the rupiah would be limited by rising yields on United States (US) bonds after data showed price growth in the US was higher than expected, bringing US bond yields up.

The yield on the two-year US Treasury increased to 4.074 percent and that of the 10-year to 3.528 percent. Investors are also waiting for US inflation data related to the Personal Consumption Expenditures (PCE) this evening.

He estimates that the rupiah exchange rate will move in the range of Rp. 14,600 per US dollar to Rp. 14,800 per US dollar.

On Thursday (27/4/2023) the rupiah closed increasing by 129 points or 0.87 percent to the position of IDR 14,707 per US dollar compared to the position at the previous closing of IDR 14,836 per US dollar.

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Reporter: Martha Herlinawati Simanjuntak
Editor: Click Dewanto


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