JAKARTA: The Indonesian rupiah currency has room to appreciate further, after it stayed relatively unchanged following the Federal Reserve's decision to cut US rates earlier this week, Bank Indonesia Governor Perry Warjiyo said on Friday.
The rupiah has been hovering around 14,000 a dollar for more than a week, but dollar purchase by domestic corporations had kept it from strengthening further, Warjiyo told reporters. The currency traded at 14,050 per dollar at 1.11pm.
"There is room for the currency to strengthen even more," the governor said, citing low inflation and good economic prospects. He also said the Fed's rate cut had been priced in by the market.