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Indonesia c.bank optimistic rupiah will be more stable in 2019

Published 07/12/2018, 05:05 pm
Updated 07/12/2018, 05:10 pm
© Reuters.  Indonesia c.bank optimistic rupiah will be more stable in 2019

JAKARTA, Dec 7 (Reuters) - Indonesia's central bank is optimistic the rupiah and financial markets will be more stable in 2019 and that a recent sell-off of emerging market assets is temporary, a deputy governor told reporters on Friday.

Mirza Adityaswara said the rupiah's depreciation this week was caused by a combination of global factors such as fading optimism for U.S.-China trade truce and the movement of the U.S. Treasury yield curve.

"I think the impact to emerging markets is temporary and in 2019, if the U.S. economy grows more slowly, then capital flow will return to emerging markets," he said.

"I am optimistic that in 2019 the exchange rate will be more stable and the financial markets will get better," he said.

The rupiah IDR= on Friday strengthened by 0.3 percent, taking a breather after three consecutive days of losses. It has lost 6.6 percent against the dollar so far this year.

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