Injected The COVID-19 Vaccine, Rupiah Gagah Perkasa Wednesday Morning

JAKARTA - The rupiah exchange rate on the spot market opened up significantly on Wednesday, July 22 trading. The rupiah opened and shot 136 points to the level of Rp14,605 per US dollar.

Monex Investindo Futures Head Researcher Ariston Tjendra said the strengthening of the rupiah was supported by external sentiment, especially the rescue of the European economy and the discovery of the COVID-19 vaccine.

"The EU stimulus agreement worth 750 billion euros raised the price of risky assets, including the rupiah," Ariston told VOI.

The agreement, said Ariston, is considered to be able to help economic recovery. The stimulus also provides liquidity in the financial market which encourages market players to invest in riskier assets that offer higher yields.

But on the other hand, the rupiah may be under pressure due to negative sentiment from President Trump's statement this morning that the COVID-19 virus crisis will still worsen in the US.

"Concerns about the COVID-19 virus, which continues to increase in the world, are still a suppressor for risky assets, including the rupiah," he explained.

This morning, until 09.00 WIB, the majority of currencies in the region are in the green zone. However, the Singapore dollar and Hong Kong dollar filled the negative zone this morning.

The Singapore dollar is seen weakening 0.05 percent and is the currency with the deepest weakness in the region. Followed by the Hong Kong dollar, which edged down 0.004 percent.

Meanwhile, the South Korean won is just below the rupiah, having gained 0.34 percent. Then there was the Taiwan dollar which rose 0.33 percent and the Chinese yuan which rose 0.19 percent.

Following behind was the Malaysian ringgit, which rose 0.17 percent. Then, the Philippine peso and the Thai baht both appreciated 0.16 percent against the US dollar.

Furthermore, the Japanese yen complements the strengthening in the Asian zone after edging up 0.03 percent this morning.