The rupiah exchange rate, which strengthened to Rp9,935 against the US dollar at the end of last week, still has a positive impact on the Indonesian economy, a central bank official said, Antara reported.
“The rupiah’s current appreciation is still within the limits of propriety as a result of investors` growing interest in local securities, particularly in the stock market,” Bank Indonesia (BI) deputy governor Hartadi A Sarwono said on Friday.
The positive sentiment was also fueled by the bullish market, which showed good prospects for the Indonesian economy, he said.
The dollar’s weakening against a range of foreign currencies including the rupiah was due to a surge in the deficit of the US state budget.
Source: Coordinating Ministry for Economic Affairs Trade and Investment News, 3 August 09