Rupiah Continued its Rally the Dollar on Monday Evening

Jakarta (Antara) - The Indonesian rupiah continued its rally against the dollar in the late Monday trading session due to a large inflow of foreign capital in the domestic share market, a money market analyst said. The rupiah rose sharply by 103 points to close at 11,253 per dollar on Monday evening, from 11,356 per dollar in the previous trading session. The rupiah's strengthening suggested that global market players considered the Indonesian economic fundamentals to be better, chief researcher of Monex Investindo Futures, Ariston Tjendra, said here on Monday. "The stable inflation rate in February and the country's rising foreign exchange reserves are among the factors (of the rupiah's strengthening)," he added. The measures taken by the government and the central bank of Indonesia to reduce dependence on the import of oils and other non-essential goods had received good responses from the market players, he said. On the other hand, the conducive political situation had added to the positive sentiment for the rupiah's exchange rate, he pointed out. "Market players are keeping their eyes on the next presidential candidates. So far, they have positively responded to the existing presidential candidates," he said. However, he feared that the rupiah, which strengthened too fast, would exert pressure on exports. According to Bank Indonesia's mid-rate on Monday, March 17, the rupiah strengthened to Rp11,272 per dollar from the previous close of Rp11,421 per dollar. (*) Reporting by Zubi Mahrofi