The Indonesian rupiah is strengthening against the US dollar
The exchange rate of the rupiah has shown an upward trend against the United States dollar (USD). A week prior, the exchange rate was noted at Rp. 15,900 per USD, whereas this weekend (16 August 2024), it commenced at a bid level of Rp. 15,740 per USD.
This figure reflects a slight decline compared to the trading close on Thursday (15/8/2024), where the rupiah concluded at a bid level of IDR 15,690 per USD. However, it remains significantly stronger than the exchange rate recorded at the end of trading on Friday, 9 August 2024.
At the conclusion of trading on August 16, 2024, in the Jakarta interbank money market (JISDOR), the rupiah exchange rate settled at IDR 15,685.
In conjunction with the rupiah's strengthening on Thursday (15/8/2024), the yield on 10-year Government Securities (SBN) decreased to 6.72 percent.
The DXY, or USD index, against six other major national currencies, weakened to 102.98, while the yield on 10-year US government bonds, or US Treasury Notes, fell to 3.91 percent. Additionally, the Indonesian business risk premium, as indicated by the credit default swap (CDS) for five years, decreased from 76.56 basis points as of August 9, 2024, to 71.80 basis points.
According to an official statement from Bank Indonesia on Friday (16/8/2024), at the start of trading, the rupiah experienced a slight weakening to the level of IDR 15,740, while the yield on the 10-year SBN rose marginally to 6.75 percent.
Also Read: The Rupiah Strengthened to Below Rp16,000 per US Dollar USD
Foreign investment continues to increase at a rapid pace. According to transaction data from August 12 to 15, 2024, foreign entities made a net purchase totaling IDR 9.67 trillion. This amount includes net purchases of IDR 7.36 trillion in the government bond market, IDR 2.18 trillion in the equity market, and IDR 0.13 trillion in Bank Indonesia Rupiah Securities (SRBI).
As of August 15, 2024, data indicates that during the year, foreign investors recorded net sales of IDR 11.54 trillion in the government bond market, while simultaneously achieving net purchases of IDR 179.37 trillion in SRBI and IDR 3.36 trillion in the stock market.
In the second half of 2024, up to August 15, foreign or non-resident investors reported net purchases of IDR 49.02 trillion in SRBI, IDR 22.42 trillion in the government bond market, and IDR 3.02 trillion in the equity market.
