Rupiah Strengthens Opening Weekend 15 Points To IDR 14,063 Per US Dollar

JAKARTA - The rupiah exchange rate on the spot market opened stronger on Friday, June 19 trading. The rupiah strengthened 15 points to a level of Rp14,063 per US dollar (US).

Head of Research at Monex Investindo Futures, Ariston Tjendra, said that according to expectations, Bank Indonesia (BI) had cut its benchmark interest rate, which certainly provided positive sentiment for the rupiah because the cuts could help increase Indonesia's economic activity.

"However, the driving factor for the rupiah is not only BI. The rupiah is still very vulnerable to external factors," said Ariston to VOI.

Ariston explained that currently there is still a tug of war between positive and negative sentiments so that the rupiah has recently moved slightly.

"The reopening of the economy amid the pandemic has provided positive sentiment to the market, including the new normal economy in Indonesia," he said.

But on the other hand, the market is still wary of the increase in the spread of the COVID-19 virus and the second wave (second wave) which could reduce economic activity again. Regional geopolitical tensions in Asia between the two Koreas as well as China and India, could also hold back the strengthening of the rupiah against the US dollar.

"Today, the rupiah may gain a slight strengthening like yesterday, with a potential range of Rp. 14,000-14,100 per US dollar," said Ariston.