JAKARTA - Bank Indonesia (BI) recorded that the rupiah exchange rate throughout June 2019 strengthened by 1.04% point-to-point compared to strengthening in late May, and 1.13% on average compared to strengthening throughout May.
"Strengthening of the rupiah continues in July 2019, which has been1.06% until July 17, 2019 point to point compared to the level at the end of June 2019. This strengthening is driven by attractive portfolio investment returns in domestic financial assets," said BI Governor Perry Warjiyo at the conference press at the BI headquarters after this month’s BI Board of Governors' Meeting, Thursday (18/7).
"In addition, positive perceptions of the outlook for the Indonesian economy are getting better, including after the increase in Indonesia's sovereign rating by Standard and Poor's (S&P), as well as reduced uncertainty in the global financial market in line with forecasts of more dovish global monetary policy."
Mr Warjiyo added that these positive developments encourage foreign capital inflows inIndonesia, as well as strengthening the rupiah exchange rate. BI believes that the rupiah exchange rate will continue to stabilise along with well-maintained market mechanism.
"To support the effectiveness of exchange rate policies and strengthen domestic financing, Bank Indonesia continues to accelerate financial market deepening, both in the money and the foreign exchange markets," Mr Warjiyo concluded. (MS)