Wednesday Morning Rupiah Gains 20 Points To Rp14,245 Per US Dollar

JAKARTA - The rupiah exchange rate on the spot market opened stronger on Wednesday, July 1 trading. The rupiah opened up 0.14 percent or 20 points to a level of Rp14,245 per United States dollar (US).

Head of Research at Monex Investindo Futures, Ariston Tjendra, said that even though it was opened higher, the rupiah was still vulnerable to weakening today due to the many negative sentiments.

"Concerns about slowing economic recovery due to the high number of COVID-19 cases will still suppress the movement of risky assets," Ariston told VOI.

In addition, he said, the passage of the Hong Kong Security Law has the potential to increase tensions between the US and China which will also provide negative sentiment to risk assets. The rupiah could be depressed by this negative sentiment.

"Today, Indonesia's inflation data will be released for June, if it shows a lower figure below 2 percent (year on year / yoy) which indicates Indonesia's economic activity is slowing down, it could give negative sentiment to the rupiah.

"The rupiah could weaken again, with the potential in the range of Rp. 14,150-14,330," said Ariston.

Based on VOI's observation, at 09:20, it was true that the rupiah was moving to weaken. During that hour, the rupiah weakened 0.19 percent or 28 points to a level of Rp14,293 per US dollar.

This morning, the majority of Asian currencies strengthened against the US dollar, led by the Taiwan dollar and the South Korean won which both gained 0.27 percent.

Followed by the Malaysian ringgit and Japanese yen, which strengthened respectively 0.16 percent and 0.14 percent. Then the Indian rupee strengthened 0.10 percent.

The Philippine peso strengthened 0.06 percent, and the Chinese yuan strengthened 0.03 percent.

Meanwhile the Thai baht was the only currency that weakened by depreciating 0.10 percent.