Rupiah Wednesday Towards Noon Still Weak Against The US Dollar

Illustration. (Photo: Doc. Antara)

JAKARTA - The rupiah exchange rate in the spot market was observed to be still weakening against the US dollar by midday, Wednesday 9 June. The weakening occurred after the release of foreign exchange reserve data in May 2021.

At 11.00 WIB, the rupiah seemed to have weakened by 5 points or 0.04 percent to the position of IDR 14,258 per US dollar compared to the position at the close of the previous trade of IDR 14,253 per US dollar.

"Some market participants responded negatively to the May 2021 foreign exchange reserve data, which fell to the lowest level this year. Investors tend to release medium to long tenor SUN (Government Securities)", the NH Korindo Sekuritas Research Team wrote in its study quoted from Antara.

Data on foreign exchange reserves in May 202 fell by 2.4 billion US dollars to 136.4 billion US dollars from the previous month's 138.8 billion US dollars.

This decline in foreign exchange reserves is also the deepest decline since March 2020 or when COVID-19 was declared an outbreak.

For the record, foreign exchange reserves for the March 2020 period fell to 9.5 billion US dollars from the previous month. Meanwhile, the decline in foreign exchange reserves this time was due to the payment of government foreign debt.

Previously, bids for the auction of government securities on Tuesday, June 8, managed to record a value of IDR 78.5 trillion, slightly higher than the previous auction of IDR 78.2 trillion.

This high demand again indicates that liquidity is still high, amidst the trend of low-interest rates.

Market participants are also not worried about tapering the US central bank The Fed, which will not be done soon. The Fed is still observing several inconclusive data indicators.