BI expects rupiah to strengthen in 2nd half of 2016

[JAKARTA] Indonesia's central bank expects more stable external conditions this year, which should lead to the rupiah appreciating in the second half, Deputy Governor Perry Warjiyo told reporters on Monday.

He said he sees the Federal Reserve raising US interest rates twice this year, by a total of 100 basis points. He also said he is sure China will stabilise its financial market, making external condition more stable.

The rupiah was emerging Asia's second-worst performing currency last year when it lost more than 10 per cent against the dollar.

This year, it has been one of the best performing currencies. At 0335 GMT Monday, it was trading at 13,845 to the dollar.

REUTERS