The Dollar Is Furious, Dragging The Rupiah To Weave 175 Points To Rp14,553 Per US Dollar

JAKARTA - The rupiah exchange rate on the spot market weakened significantly on today's trading Friday, July 3. The rupiah must acknowledge the power of the dollar, in which the Garuda currency must weaken 175 points or 1.22 percent to the level of Rp14,553 per US dollar.

Head of Research at Monex Investindo Futures, Ariston Tjendra, said it seems that the global market is still very disturbed by the increase in the COVID-19 virus which has caused several countries to partially lockdown again. Indonesia itself is still increasing its positive cases.

"The lockdown could slow down the economy again. WHO itself has also given warnings to several countries to carry out a lockdown again," Ariston told VOI.

This concern has pushed hot money or foreign capital out of the Indonesian market. BI reported that there was a net foreign sell in the period 29 June-2 July amounting to IDR7.81 trillion.

As of 15.00 WIB, the rupiah was still the currency with the deepest weakness in the Asia Pacific region. Currency movements in the region also look mixed.

The Philippine peso was still the highest strengthening currency after gaining 0.37 percent. Furthermore, there was the Indian rupee, which strengthened 0.22 percent and the Korean won, which rose 0.11 percent against the US dollar.

Followed by the Singapore dollar, which appreciated 0.01 percent and the Japanese yen, which rose 0.009 percent. The Hong Kong dollar was seen edging up 0.001 percent after moving steady throughout the day.

Meanwhile, the Thai baht is just above the rupiah after having weakened 0.05 percent. The Taiwan dollar, which had always been in the green zone, fell slightly by 0.04 percent.

The weakening also occurred in the Malaysian ringgit and Chinese yuan. The ringgit was seen corrected 0.01 percent and the yuan edged down 0.004 percent against the US dollar.