Rupiah Potentially Strengthens Amid Geopolitical Tensions

Illustration. (Photo: Doc. Antara)

JAKARTA - Financial Market Observer and Commodity Ariston Tjendra said that the movement of the rupiah has the potential to strengthen against the United States (US) dollar on Monday, June 30.

Ariston said that this morning the Asian regional stock market showed quite positive performance, supported by the strengthening of the regional currency exchange rate against the US dollar.

"This morning the regional stock market asia looked quite positive, the exchange rate also strengthened against the US dollar. This indicates market interest in risks is quite good," he told VOI, Monday, June 30.

According to him, market sentiment is still positively influenced by the easing of tensions in the Middle East, following a ceasefire between Israel and Iran mediated by the United States.

In addition, he explained that the news about the achievement of a trade agreement between the United States and China on Thursday last week also provided a positive boost to the market.

"The issue of US budget approval can also be a pressure for US dollars because strong debates in the DPR usually delay the budget. This budget also adds US debt of US$3.3 trillion," he explained.

He conveyed that the movement of the rupiah on Monday, June 30 has the potential to strengthen to the level of Rp. 16,150 per US dollar - Rp. 16,120 per US dollar.

For information citing Bloomberg, on Thursday, June 26, the rupiah spot exchange closed higher by 0.56 percent to the level of Rp. 16,209 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI), closed up 0.36 percent to a price level of Rp. 16,233 per US dollar.