The Indonesian Rupiah has shown a strengthening trend against the US dollar over the past four months. The Jakarta Interbank Spot Dollar Rate (JISDOR) on Monday, January 4, 2019, reached Rp 13,976 per US dollar, appreciating 3.49% from its end-2018 position and marking its strongest level since June 21, 2018.
Easing global concerns, coupled with the increasingly limited increases in the US Federal Reserve's benchmark interest rate, are among the factors driving the Rupiah's appreciation against the US dollar. Furthermore, the return of foreign capital inflows into the domestic financial market has also supported the Rupiah's strengthening.
The Rupiah has strengthened by more than 8% from its position on October 11, 2018, when it had fallen to Rp 15,253 per US dollar. The Rupiah has capitalized on the waning dominance of the US dollar against other world currencies, strengthening to below Rp 14,000 per US dollar.