IDR gains ground on improved market sentiment
The Indonesian Rupiah has gained support from strong foreign capital inflows, with funds entering government bonds and the central bank’s one-year SRBI bonds reaching approximately 105 trillion so far in June.
The Rupiah’s gain follows global index provider MSCI’s decision to defer a potential downgrade of Indonesia’s equity market to frontier status until November.
The US Dollar is pulling back, contributing to the USD/IDR’s downward movement, after hitting a 13-month high of 101.80 on Wednesday.