Sentiment From The United States And COVID-19 Still Under Pressure On The Rupiah

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The rupiah exchange rate on the spot market was opened lower on Thursday, September 24 trading. The rupiah opened down 10 points or 0.7 percent to a level of Rp14,825 per US dollar (US).

Head of Research at Monex Investindo Futures, Ariston Tjendra, said that sentiment on the strengthening of the US dollar still happened last night and could have an impact this morning which could put pressure on the rupiah Thursday.

"The strengthening of the US dollar was triggered by market concerns about a slowdown in the economic recovery in the US. This was also what drove the US stock index down overnight," Ariston told VOI.

Concerns about a slowdown in US economic recovery arose due to the ongoing pandemic, but the second package of US fiscal stimulus has yet to be agreed.

"Meanwhile, the issue of economic recovery and domestic pandemic conditions could also put pressure on the rupiah. The rupiah has the potential to move in the range of Rp14,750-14,900 per US dollar," he said.

Meanwhile, the Director of TRFX Garuda Berjangka in his research stated that there are a number of sentiments that need to be observed in the movement of the rupiah exchange rate, one of which is the development of the draft of the Bank Indonesia Law which foreign investors consider odd.

"This is because the amendment to the BI Law is deemed to open up opportunities for the Minister of Finance to influence BI to participate in funding the budget deficit. The bill is currently still in its early stages and is in the House of Representatives," he explained.