The Indonesian rupiah rallied to the highest level in about five months today as the market sentiment was positive and helpful to currencies of emerging markets.
The doubts about the ability of the Federal Reserve to raise interest rates this year led to the weakness of the US dollar and inflows into emerging markets. China’s central bank added stimulus this week by cutting reserve requirements for banks, and this also helped the sentiment. All in all, fundamentals were favoring risky currencies, and that translated into the rally of the rupiah.
USD/IDR was down from 13,335 to 13,280 as of 13:58 GMT today, and its daily low was at 13,218.
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