Rupiah Mighty Weekend Driven US Monetary Easing Policy

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The rupiah exchange rate on the spot market has finally appeared strong this weekend, Friday, August 28. The rupiah was successfully closed up 0.19 percent or 28 points to a level of Rp14,632 per United States dollar (US).

Monex Investindo Futures Research Coconut, Ariston Tjendra said, the strengthening of the rupiah was likely due to the market anticipating the Fed's attitude of maintaining monetary easing policy longer to lift US inflation beyond the 2 percent target.

"This easing policy has the potential to put pressure on the US dollar and support riskier assets, including the rupiah," Ariston told VOI.

Until 15.00 WIB, most currencies in Asia are in the green zone. Only, the Taiwan dollar remained in the negative zone after slightly lowering 0.05 percent.

Meanwhile, the Indian rupee managed to become the biggest strengthening currency in Asia after gaining 0.52 percent. This was followed by the Japanese yen which rose 0.48 percent and the Thai baht rose 0.40 percent against the US dollar

Furthermore, there were the Chinese yuan and Singapore dollar which were similarly lifted, 0.39 percent and 0.35 percent, respectively. Then, the Philippine peso appreciated 0.33 percent and the South Korean won rose 0.06 percent.

Followed by the Malaysian ringgit which also edged up 0.01 percent. Meanwhile, the Hong Kong dollar remained stable and slightly strengthened by 0.001 percent against the US dollar.