REPUBLIKA.CO.ID, JAKARTA -- The Indonesian rupiah continued its rally against the U.S. dollar on Thursday evening, strengthening 15 points to close at Rp13,129, compared with the previous close of Rp13,144 per dollar.
"Bank Indonesia's policy to keep its benchmark interest rate at a level of 6.75 percent and the newest benchmark interest instrument's `7-Day Reverse Repo Rate' at 5.50 percent has given a room to the rupiah to strengthen against the U.S. dollar," PT Danareksa Sekuritas analyst Lucky Bayu Purnomo said.
The central bank's policy could attract foreign investors to Indonesia, he said.
He added that the government's plan to issue the 12th tranche of the economic policy package has received a positive response from domestic market players.
He believed that the economic policy will boost the national economy more aggressively.
On an external side, global crude prices, which are stable at more than US$40 per barrel have sent a positive signal to the global economy, particularly commodity producing countries, including Indonesia, he said.
WTI Crude stood at US$44.15 per barrel, and Brent Crude remained at US$45.78 per barrel on Thursday evening.
Chief researcher of Monex Investindo Futures, Ariston Tjendra said oil prices which are stable at a psychological level is one of the keys to strengthening commodity currencies.
Yet, market players should remain alert for a fluctuation in crude prices, which are still haunted by global oversupply sentiments due to the failure to achieve an agreement on production limitations and the end of the oil and gas workers' strike in Kuwait.
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