Waiting For The BI RDG, The Rupiah On Thursday Strengthens 28 Points To Rp14,560 Per US Dollar

JAKARTA - The rupiah exchange rate on the spot market opened higher on trading Thursday, July 16. The rupiah opened up 28 points or 0.19 percent to a level of Rp14,560 per US dollar.

Head of Research at Monex Investindo Futures, Ariston Tjendra, said external conditions this morning saw pressure on risky assets due to fears of increased transmission of the COVID-19 virus and worsening US-China relations.

"The rupiah might move weaker today," Ariston told VOI.

In fact, he said, the US and European markets had closed positive last night due to news on the progress of vaccine research.

Meanwhile, today the market is waiting for the second quarter GDP data and China's June industrial production data released at 9 am this morning, which are expected to be better than the previous data.

"If this is the case, the results can provide positive sentiment to risky assets today, including the rupiah," he said.

Domestically, the market is looking forward to the results of the BI RDG which still opens up opportunities for a 25 bps cut in the benchmark interest rate. With inflation conditions that are still under control at below 2 percent, this cut can occur.

"The market may have anticipated this result yesterday. The situation sell on fact buy on rumor might encourage the strengthening of the rupiah after the announcement of BI," explained Ariston.

According to him, the rupiah today has the potential to move in the range of Rp14,450-14,700 per US dollar, with a slight possibility of strengthening.

This morning, currencies in the Asia Pacific region weakened the majority against the US dollar, led by the Thai baht which fell 0.43 percent. Followed by the South Korean won which weakened 0.29 percent.

Followed by the Singapore dollar and the Philippine peso which weakened respectively 0.13 percent and 0.12 percent. Then the Malaysian ringgit fell 0.08 percent.

The Chinese yuan and Hong Kong dollar eroded slightly by 0.06 percent and 0.01 percent, respectively. Meanwhile the Japanese yen did not move like yesterday's closing.

Accompanying the rupiah, the currency that strengthened this morning was the Indian rupee which has appreciated 0.37 percent. Followed by the Taiwan dollar which strengthened 0.12 percent.