The interbank exchange rate of rupiah in Jakarta moved higher by 23 points, reaching 13,045 rupiah per one US dollar compared to 13,068 rupiah previously.
“Rupiah strengthened against US dollar in line with the growth indicated in the just released domestic economy data,” said Woori Saudara Indonesia Tbk money market watcher Rully Nova in Jakarta on Monday.
According to the Central Bureau of Statistics, Indonesias economy experienced a 5.02 percent growth in the third quarter of 2016, thus reflecting that the cumulative growth has reached 5.04 percent by the third quarter of the year.
The strengthening of the domestic currency has a lot to do with the market players confidence in Indonesias economy amid an uneven global economic scenario, spurring an interest in assets with rupiah denomination.
At the same time, Nova believed the strengthening of the currency was still relatively limited, corresponding with commodity prices, especially the worlds crude oil price which is still at US$50 per barrel, indicating the psychological level of investors.
The WTI Crude Oil was at US$44.76 per barrel as of Monday evening, while Brent Crude Oil was at US$46.11 per barrel.
“The crude oil prices are expected to show an upward trend, sustaining rupiahs fluctuation in a positive area,” he noted.
Meanwhile, Indonesias Central Bank recorded on Monday that rupiahs the middle exchange rate moved higher to 13,082, compared to 13,103 on Friday.