Rupiah Closed The Strongest In Asia Pacific, Driven By Positive Sentiment By The US Central Bank

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The rupiah exchange rate on the spot market closed strongly on trading Monday, August 31. The rupiah closed up 0.47 percent or 70 points to the level of Rp14,563 per US dollar.

Head of Research at Monex Investindo Futures, Ariston Tjendra, said that the rupiah exchange rate received positive sentiment from indications of longer and possibly more aggressive monetary easing policies from the US Central Bank to help the US economy recover.

As expressed by the governor of the Fed in a speech at an online meeting of world central bank officials in Jackson Hole last Thursday.

This attitude of the Fed encouraged the weakening of the US dollar exchange rate and helped strengthen risk assets, including the rupiah

Rupiah led the strengthening of Asian currencies against the US dollar until this afternoon. Apart from the rupiah, the Malaysian ringgit also strengthened 0.20 percent, the Philippine peso strengthened 0.14 percent.

Then the Chinese yuan strengthened 0.10 percent, the Taiwan dollar strengthened 0.02 percent and the Hong Kong dollar strengthened 0.004 percent against the US dollar.

Meanwhile, other Asian currencies weakened against the US dollar. The Japanese yen weakened 0.39 percent, the Korean won weakened 0.27 percent, the Indian rupee weakened 0.25 percent, the Singapore dollar weakened 0.21 percent and the Thai baht weakened 0.14 percent against the US dollar.