After 7 Consecutive Days Of Weakening, The Rupiah Finally Strengthened Because The Dollar Was Not Attractive

JAKARTA - The rupiah exchange rate on the spot market opened higher on trading Wednesday, August 19. The rupiah opened up 0.64 percent or 95 points to a level of Rp14,750 per United States dollar (US).

Head of Research at Monex Investindo Futures, Ariston Tjendra, said the sentiment for the weakening of the US dollar continued this morning. The US dollar has not been attractive to the market or has been under pressure recently as the state of the economic recovery in the US is in question.

"Moreover, COVID-19 cases are still increasing there," Ariston told VOI.

Regional currency exchange rates are seen strengthening against the US dollar this morning. On the other hand, domestic recession expectations and falling import data exceeding expectations put pressure on the rupiah.

"The slowing import data implies that domestic economic activities such as manufacturing and consumption are still weak. Indonesia's economic recovery is a question," he explained.

Today the market is waiting for the results of the Bank Indonesia (BI) meeting. If there is a new stimulus to help restore Indonesia's economy from BI, it could help push for strengthening for the rupiah.

"The two opposing sentiments above will overshadow the movement of the rupiah today. The rupiah will move in the range of Rp14,750-14,950 per US dollar.