REPUBLIKA.CO.ID, JAKARTA -- The Indonesian rupiah has slightly strengthened four points to Rp13,764 on Monday's opening. The previous rate was Rp13,768 per US dollar.
"Sentiments from Moody's upgrade to Indonesian sovereign credit ratings had helped the rupiah to appreciate," Binaarta Securities analyst Reza Priyambada noted here on Monday.
On Apr 13, Moody's Investors Service (Moody's) had upgraded the Government of Indonesia's long-term issuer and senior unsecured ratings to Baa2 from Baa3. The outlook was changed to stable from positive.
In addition, Priyambada remarked that World Bank's positive economic outlook on East Asia and the Pacific region, including Indonesia, with robust support from investment and household consumption, has helped to maintain the rupiah's pace.
However, escalating tensions between Russia and the United States along with their alliances over Syria's war has triggered a negative sentiment towards risk currencies, thereby halting the rupiah's appreciation to a higher rate.
Monex Investindo Futures analyst Faisyal noted that the current geopolitical crisis in the Middle East had increased demand for safe haven assets, particularly in the US dollar currency.
"At this time, the market is waiting for Russia's response to the attack by the United States and its alliances (on Syria)," he noted.
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