REPUBLIKA.CO.ID, JAKARTA -- The Indonesian rupiah strengthened 14 points against the dollar to close at Rp13,354 in the Jakarta inter-bank spot market on Tuesday evening compared to the previous close of Rp13,368.
"The rupiah's exchange rate has recovered after the dollar came under pressure due to investors' profit-taking action," Monex Investindo Futures chief researcher Ariston Tjendra said here on Tuesday.
The dollar appreciated against other currencies, fueled by sentiment towards ISM data of the US manufacturing which stood at 57.8 in June 2017, higher than 54.9 previously.
Indonesia's inflation rate which could be kept under control in June 2017 served as one of the factors causing the rupiah to appreciate against the dollar, he said.
The Central Statistics Agency (BPS) said on Monday the country's inflation rate reached 0.69 percent in June 2017, bringing the calendar inflation rate to 2.38 percent and year-on-year inflation rate to 4.37 percent.
In addition, several other indicators such as economic growth, and trade surplus have positively contributed to the rupiah's appreciation, he said.
Indonesia recorded a surplus of US$0.47 billion in its foreign trade in May 2017.
EXTN research analyst Lukman Otunuga meanwhile said some of market agents still questioned US President Donald Trump's capability to realize his policies and this has been one of the factors preventing the dollar from strengthening.
In its mid rate on Tuesday, Bank Indonesia recorded the rupiah weakened to Rp13,386 from Rp13,325 per dollar the day before.
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