Monday Opened Stronger Rupiah, 20 Minutes Later Immediately Weakened

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The rupiah exchange rate on the spot market opened stronger on Monday, August 24 trading. The rupiah strengthened 0.12 percent or 18 points to a level of Rp14,755 per US dollar.

However, at 09:20, the rupiah moved down 0.07 percent to a level of Rp14,783 per US dollar.

Head of Research at Monex Investindo Futures, Ariston Tjendra, said the uncertain rupiah movement was due to the US dollar's strengthening at the end of last week due to indications of economic recovery from US economic data.

"The US manufacturing and service sector activity index survey for August and the US second home sales data released in July were better than projected," Ariston told VOI.

In addition, he continued, the tensions between the US and China could also be a pressure on the rupiah exchange rate against the US dollar because it could disrupt the global economic recovery.

"On the other hand, domestic factors where there is a potential for a recession and about the spread of the COVID-19 outbreak which is still increasing can also suppress the movement of the rupiah against the US dollar," he explained.

However, sentiments come and go. The rupiah could have strengthened if the downward pressure on the US dollar grew again.

"This Monday the rupiah may move lower with the potential in the range of Rp14,650-14,850 per US dollar." said Ariston.