Rupiah Strengthens Nearly 200 Points To IDR14,415 Per US Dollar

JAKARTA - The rupiah exchange rate was able to experience a significant strengthening at the close of trading on Tuesday 2 June. The rupiah strengthened 195 points or 1.33 percent to the level of Rp14,415 per US dollar (US).

Head of Research at Monex Investindo Futures, Ariston Tjendra, said that the US rioting demonstration coupled with the positive market response to Indonesia's new normalcy plan, and the opening of locks in several pandemic countries helped strengthen the rupiah against the US dollar until this afternoon.

"The market is still wary of a potential new trade war between the US and China. But because it has not heated up, this issue has not hit risk assets," Ariston told VOI.

The rupiah managed to become the currency with the biggest appreciation in the region. The majority of currencies in Asia are in the green zone.

The Malaysian ringgit is just below the rupiah after strengthening 0.50 percent. This was followed by the Thai baht, which rose 0.42 percent against the US dollar.

Then the Chinese yuan and Singapore dollar seemed to strengthen, respectively 0.14 percent and 0.09 percent. Meanwhile, the Indian rupee and Hong Kong dollar were still slightly appreciated by 0.06 percent and 0.001 percent, respectively.

Meanwhile, the Japanese yen was the currency with the deepest weakness after falling 0.18 percent. Next there is the Taiwan dollar which has eroded 0.13 percent.

Then there are the Philippine peso and South Korean won which are in the red zone after slightly decreasing 0.04 percent and 0.03 percent respectively.