Concerns About COVID-19 Are Still High, Rupiah Opened To Slightly Weaker By 5 Points

JAKARTA - The rupiah exchange rate on the spot market opened lower on Monday, August 3 trading. The rupiah opened slightly lower by 5 points to a level of Rp14,605 per United States dollar (US).

Head of Research at Monex Investindo Futures, Atiston Tjendra, said that this morning, it was seen that the US dollar was still strengthening against the exchange rate of emerging markets because market concerns were still heightened over the spread of the COVID-19 virus around the world which could hamper global economic recovery.

"Several countries reported the occurrence of a second wave, such as in Vietnam, Japan, China, Hong Kong, Australia, countries in Europe and others," said Ariston to VOI.

In addition, the US government bond yields came under pressure again, which means that demand for these bonds increased.

"This indicates that many market players are entering safe assets. Bond yields touched a new low since March 2020 at 0.522 percent last weekend," he explained.

He predicts that today the rupiah has the potential to weaken to around Rp. 14,700 with potential support at Rp. 14,500 per US dollar.

This morning, currencies in the Asia Pacific region moved mixed. A stronger currency, led by the Taiwan dollar, which has appreciated 0.17 percent.

Followed by the Thai baht and Indian rupees, which each strengthened 0.11 percent and 0.05 percent. Thai baht and Japanese yen were seen slightly lifting 0.04 percent and 0.01 percent.

Meanwhile, the currency that weakened against the US dollar, which was led by the South Korean won, which weakened 0.26 percent. Followed by the Philippine peso (0.16 percent), the Singapore dollar (0.09 percent), and the Chinese yuan (0.03 percent).