On Tuesday, Rupiah Gains 40 Points To Rp14,450 Per US Dollar

JAKARTA - The rupiah exchange rate on the spot market opened higher on trading Tuesday, July 7. The rupiah opened up 40 points to a level of Rp14,450 per US dollar (US).

Head of Research at Monex Investindo Futures, Ariston Tjendra, said the rupiah still had the potential to strengthen against the US dollar today with positive sentiment that pushed the strengthening of the US stock index overnight.

"Market players are still responding positively to the potential for global economic recovery with the improved economic data that has just been released," Ariston told VOI.

Last Monday, said Ariston, several economic data from developed countries showed that economic activity was growing or even recovering. For example, such as Germany and the Eurozone which reported an increase in retail sales during the month of May, the UK reported an increase in construction activity in June, and the US reported a recovery in service sector activity in June.

In addition, he continued, the Bank Indonesia (BI) policy of providing stimulus by purchasing government bonds to help fund the state budget could also provide positive sentiment for the rupiah because this was an effort to help restore the economy amid the pandemic.

"However, on the other hand, the market is still wary of the increasing rate of transmission of COVID-19 in the world which is still weighing on the movement of risky assets," he said.

He predicts that the rupiah today will move in the range of IDR 14,400 to 14,570 per US dollar.

This morning, currencies in the Asia Pacific region moved mixed in front of the US dollar. The rupiah led this morning's strengthening, followed by the Taiwan dollar which strengthened 0.30 percent.

Then the South Korean won appreciated 0.22 percent. The Chinese yuan and Malaysian ringgit gained 0.16 percent and 0.13 percent, respectively.

Followed by Thai Baht which strengthened 0.12 percent. Meanwhile, the Singapore dollar was seen slightly strengthening by 0.01 percent.

Meanwhile, the currency that weakened against the US dollar was led by the Indian rupee, which fell 0.06 percent. Followed by the Philippine peso and the Japanese yen, which each fell 0.04 percent and 0.02 percent.