The Indonesian currency matched it best level of the week against the dollar as an International Monetary Fund forecast for Japanese economic growth raised expectations for Indonesian exports.
The rupiah touched 9700.00 yesterday it best level since Monday on the IMF prediction that the worlds third largest economy will expand 1.6% in 2013, a third faster than the fund's earlier forecast of 1.2%. Japan is the second largest destination for Indonesian non-oil exports, China is first.
The rupiah closed at 9711.00 today after opening at 9720.00 and moving as high as 9700.00. The currency has begun to recover some of its losses from the February 11th to March 22nd slide which saw the rupiah lose 1.8% agaisnt the US Dollar as mainland Chinese economic statistics weakened.
The 9720-22 resistance line, marking the top from February 4th to March 20th, neatly turned to support from the 21st until April 9th and has now become resistance again. The immediate future probably depends on the ability of Japanese Prime Minister Abe's quantitative easing program in Japan to stir the country's economy from its two decade torpor.
Chief Market Strategist