Cheerful Rupiah Amid The Gloomy Economy Of Indonesia

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - Amid the minus of Indonesia's economic growth in the second quarter of 2020, the rupiah exchange rate on the spot market closed stronger on Wednesday, August 5 trading. The rupiah was able to strengthen 0.51 percent or 75 points to a level of IDR 14,550 per United States dollar (US).

Monex Investindo Futures Head of Research, Ariston Tjendra, said the market was still worried about the US economic recovery, which could potentially be disrupted due to the uncontrolled COVID-19 pandemic there.

"That is what causes the US dollar to be depressed against other exchange rates, including emerging markets," Ariston told VOI.

The Central Statistics Agency (BPS) noted that the country's second quarter 2020 economic growth contracted or minus 5.32 percent on an annual basis or year on year (yoy). This figure worsened from the first quarter of 2020 which reached 2.97 percent and the second quarter of 2019 which was 5.05 percent.

This afternoon in Asia Pacific, the rupiah led the strengthening of the majority of other currencies. Apart from the rupiah, the Malaysian ringgit and South Korean won gained 0.49 percent and 0.42 percent, respectively.

Then the Chinese yuan strengthened 0.29 percent. The Indian rupee lifted 0.18 against the US dollar.

Followed by the Singapore dollar strengthened 0.18 percent, the Taiwan dollar strengthened 0.17 percent, and the Thai baht strengthened 0.08 percent.

The Philippine peso and Japanese yen edged up 0.06 percent and 0.009 percent respectively against the US dollar.