Rupiah Opens Up 22 Points To Rp14,418 Per US Dollar

JAKARTA - The rupiah exchange rate on the spot market opened stronger on Wednesday, July 8 trading. The rupiah opened up 22 points to a level of Rp14,418 per United States dollar (US).

Based on VOI monitoring at 09:15, the rupiah was still moving stronger. Garuda's currency was at the level of IDR 14,397 per US dollar, or strengthened 0.30 percent or 43 points.

Head of Research at Monex Investindo Futures, Ariston Tjendra said, even though it was opened to strengthen, the rupiah could be under pressure today against the US dollar because market concerns about the increase in COVID-19 cases were back in the market.

"Market players are worried that the increase in COVID-19 cases will disrupt economic recovery," Ariston told VOI.

He said WHO reported an increase in the rate of positive cases of COVID-19 in June which could lead to an increase in the death rate due to the virus in the future.

"A number of US Central Bank officials overnight also indicated concerns over the economic recovery due to COVID-19," he said.

Meanwhile, the 10-year US bond yields were seen to weaken again from the range of 0.70 percent to 0.64 percent, indicating high demand for safe US dollar assets.

"Rupiah has the potential to move lower towards resistance at Rp14,550, while the support area is around Rp14,400 per US dollar.

This morning, currencies in the Asia Pacific region weakened the majority against the US dollar. The decline was led by the Indian rupee which depreciated 0.34 percent.

Followed by the Thai baht which weakened 0.24 percent. The Chinese yuan and Japanese yen both fell 0.13 percent.

The Philippine peso and Malaysian ringgit weakened 0.10 percent and 0.07 percent, respectively. Meanwhile, the Singapore dollar is seen slightly weakening 0.03 percent.

Meanwhile, the stronger currency was led by the rupiah. Followed by the Taiwan dollar which strengthened 0.17 percent.