Rupiah Raised Nearly Rp. 14,100 Despite Indonesia Being Hit By A Recession

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The rupiah exchange rate on the spot market closed significantly stronger on Friday November 6 trading. The rupiah closed up 120 points or 1.18 percent to the level of Rp14,210 per United States dollar (US).

Rupiah does not strengthen alone. The exchange rate of other Asian countries also strengthened against the US dollar, only the rupiah was the strongest.

Head of Research at Monex Investindo Futures, Ariston Tjendra, said one of the drivers for the strengthening of the rupiah was optimism for Indonesia's economic recovery. Today there is also a statement by the Executive Director of the BI Monetary Management Department, who estimates that Indonesia's third quarter current account will be a surplus from the previous deficit.

"This certainly helps to support the strengthening of the rupiah. Indonesia's bond yields are still higher than neighboring countries," Ariston explained to VOI.

In Asia, the rupiah led the strengthening of Asian currencies against the US dollar, followed by the Korean won which strengthened 0.69 percent, the Thai baht strengthened 0.49, the Indian rupee strengthened 0.33 percent.

Then, the Malaysian ringgit strengthened 0.28 percent, the Singapore dollar strengthened 0.18 percent, the Philippine peso strengthened 0.17 percent, the Taiwan dollar strengthened 0.11 percent and the Japanese yen strengthened 0.01 percent against the US dollar.

Meanwhile, the Hong Kong dollar and Chinese yuan weakened against the US dollar by weakening 0.006 percent and 0.23 percent, respectively.