Rupiah Strengthens Below Rp 14,400 per US Dollar

The Indonesian Rupiah has strengthened against the US dollar. Foreign fund inflows into the stock market have boosted the Rupiah to below Rp 14,400 per US dollar for the first time since July 18, 2018. According to Bloomberg data, on Thursday, November 29th, the Rupiah closed 1% stronger at Rp 14,383 per US dollar, compared to Rp 14,529 the previous day.

Indonesia's economy, still growing at 5%, inflation remaining around 3%, and an attractive yield of 7.95% are positive catalysts for the Rupiah's movement. Furthermore, foreign fund inflows into the stock and bond markets throughout November also contributed to the Rupiah's appreciation.

For information, on Thursday, November 29th, foreign investors in the Indonesia Stock Exchange recorded net purchases of Rp 690 billion, reaching Rp 12.4 trillion for the month of November, and Rp 30 trillion in the bond market. The Jakarta Composite Index (IHSG) closed up 4.72% on Thursday, November 29th, at 6,107, from its position on October 31st. Similarly, the Indonesian Composite Bond Price Index (ICBX) strengthened by 3.92% to 240 from its end-October position.