Trump's Partial Stimulus Helps Rupiah Strengthen, But Sentiment On The Protest Of The Job Creation Law

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The rupiah exchange rate on the spot market opened higher on trading Thursday, October 8. The rupiah opened up slightly by 11 points to a level of Rp14,699 per US dollar.

In yesterday's trade, the rupee closed at Rp14,710 per US dollar. The movement of the rupiah today is still overshadowed by sentiment from the US.

Head of Research at Monex Investindo Futures, Ariston Tjendra, said positive sentiment returned to financial markets since yesterday afternoon. Although Trump postponed negotiations on the stimulus package, Trump opened the release of a partial stimulus targeting workers, the airline industry and others.

"This positive sentiment has driven the US dollar down. However, the market remains alert to the dynamics surrounding this stimulus. If the partial stimulus expressed by Trump is hampered again, the US dollar will strengthen again," Ariston told VOI.

From within the country itself, he continued, the market may be aware of the fluctuation of reactions to the Job Creation Law. The rupiah also has the potential to strengthen in the range of IDR 14,650-14,800 per US dollar.

As is well known, today workers in the country are planning to hold a demonstration demanding the annulment of the Job Creation Law. The President of the Confederation of Indonesian Workers Unions (KSPI) Said Iqbal said that his party together with 32 other federations and trade union confederations would still continue the national strike on the third day, which is Thursday.