The Signing Of The Job Creation Law By Jokowi, Makes Rupiah Strong This Morning

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The rupiah exchange rate on the spot market has returned to strength. At the opening of trading on Tuesday, November 3, the spot rupiah opened up 0.19 percent to a level of Rp14,613 per US dollar (US).

Head of Research at Monex Investindo Futures, Ariston Tjendra, said that the strengthening of the rupiah was driven by positive domestic sentiment, namely the situation that was still under control after the demonstration and the Employment Creation Law (Ciptaker) which was passed yesterday.

"The market sentiment looks quite positive this morning, the Korean and Australian stock indices seem to be strengthening, the exchange rates of emerging markets in Asia are also seen strengthening against the US dollar," Ariston told VOI.

According to him, the market responded positively to the positive survey data on the manufacturing activity index of major countries, such as China, Japan, Europe and the US, which were released yesterday.

"This positive sentiment can encourage the strengthening of the rupiah against the US dollar today," he explained

Meanwhile, he continued, the US Election did not seem to have influenced the direction of prices because the two candidates showed strict polling differences. From the poll, the market is more in favor of Biden to win.

"However, this has an impact on price movements which seem to be consolidating in a narrow range. The potential range of the rupiah this morning is in the range of Rp. 14,550-14,700 per US dollar," he said.

As of 9 a.m. WIB, the Philippine peso was Asia's biggest strengthening currency after rising 0.22 percent. Followed by the Singapore dollar which strengthened 0.13 percent against the US dollar.

Next there was the Chinese yuan which rose 0.09 percent and the Malaysian ringgit which rose 0.08 percent. Then there is the Thai baht and South Korean won, which have appreciated 0.07 percent and 0.02 percent respectively this morning.

Meanwhile, the Taiwan dollar became the currency with the deepest weakness in Asia after dropping 0.13 percent. The Hong Kong dollar and Japanese yen fell 0.02 percent and 0.01 percent respectively against the US dollar.