Tuesday Morning Rupiah Opened Weakened To Rp13,621 Per US Dollar

Illustration. (Photo: Bank Indonesia)

JAKARTA - The movement of the rupiah exchange rate on Tuesday, January 28 this morning, opened slightly lower by 6 points or 0.04 percent at the level of Rp13,621 per US dollar.

According to VOI, at 09.05, the rupiah continued to weaken. The rupiah weakened 27.5 points and was at the level of Rp.13,643 or weakened 0.20 percent.

Head of Research at Monex Investindo Futures, Ariston Tjendra, said the corona virus is still a market concern. However, the decline in the yield or yield on US bonds, especially the 10-year tenor, to the lowest level since October 10, 2019 at 1.50 percent, could encourage the strengthening of the exchange rate of emerging markets, including Indonesia.

"The decline in US bond yields is due to the massive buying due to the corona virus and also due to the expectation that the US Central Bank's policy is still loose in 2020," Ariston told VOI, Tuesday, January 28.

He explained that the US Central Bank will make a decision on monetary policy on Thursday at 2 am WIB. "I predict that today's rupiah will move in the range of Rp. 13,600-13,640," said Ariston.

Meanwhile, Bank Permata economist Josua Pardede said the weakening of the rupiah was due to investors starting to avoid risky assets. "As a result, safe haven currencies, such as the Japanese yen and US dollar and 10 year tenor US bonds strengthened," he explained.