Tuesday Morning Rupiah Rides Nearly 200 Points, Because Of The Job Creation Law And The Conducive Labor Demonstration?

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The rupiah exchange rate on the spot market opened higher on trading Tuesday, October 6. The rupiah shot up and strengthened 195 points to the level of Rp14,605 per United States dollar (US).

Head of Research at Monex Investindo Futures, Ariston Tjendra, said that the strengthening of the rupiah was driven by positive sentiment that returned to risky assets in Asian markets this morning.

"The sentiment comes from the improving condition of US President Donald Trump who has left the hospital, the progress and ongoing negotiations for the US stimulus package agreement, the improvement in the US service sector activity index data released last night.

"This sentiment has pushed market players out of safe US dollar assets and into riskier assets so that the rupiah strengthened against the US dollar this morning," Ariston told VOI.

He added that positive sentiment from within the country also came from the passage of the Job Creation Law which was seen as benefiting investors and the situation of demonstrations was under control.

Meanwhile, Director of PT TRFX Garuda Berjangka Ibrahim Assuaibi said there was also positive sentiment from within the country, where pharmaceutical companies were ready to distribute drugs for handling COVID-19 imported from India. There is a glimmer of hope that people infected with the corona virus can gradually recover.

Nevertheless, the government still urges the public to continue to implement health protocols, even if a vaccine is available.

"The government's efforts to restore the economy related to the welfare of the people will greatly depend on the handling of the COVID-19 pandemic," explained Ibrahim. Redaksi voi.id continues to monitor all developments in the world against the Covid-19 pandemic through vaccines. Dear readers, can monitor the development of the Covid-19 vaccine procurement, both domestically and internationally, by touching this link.