Tuesday Rupiah Strengthened To Level Rp13,715 Per US Dollar

Illustration. (Photo: Bank Indonesia)

JAKARTA - The rupiah exchange rate rose from its weakness and ended up strengthening at the close of trading on Tuesday, February 4. The rupiah strengthened 27 points or 0.20 percent to the level of Rp13,715 per US dollar.

Monex Investindo Futures Head Researcher Ariston Tjendra said, by this afternoon, risk assets seemed to be strengthening again. The Shanghai, Nikkei, Hangseng stock indexes closed higher. Gold prices fell.

"It is likely that the stimulus by the Central Bank of China by injecting funds into the economy is helping to ease worries," Ariston told VOI, Tuesday, February 4.

In addition, he continued, positive sentiment also came from US manufacturing index data which entered into an expansion or growth zone again.

"Apart from that, the optimism of the Australian Central Bank, which this morning announced its newest monetary policy, on the economic outlook also provides positive sentiment for risky assets," explained Ariston.

The strengthening of the rupiah is in line with the majority of currencies in the region. Based on Bloomberg data, the Korean won became the highest-strengthening currency against the US dollar after rising 0.61 percent.

Followed by the Chinese yuan which finally rebounded 0.41 percent. Quarter three coins, the Thai baht and the Taiwan dollar also strengthened 0.35 percent and 0.33 percent, respectively. The Indian rupee also managed to gain 0.25%. Furthermore, the Philippine peso has appreciated 0.20 percent. Meanwhile, the Malaysian ringgit edged up 0.02 percent.

Meanwhile, the Japanese yen was the region's deepest weaker currency after dropping 0.32 percent. Followed by the Singapore dollar and Hong Kong dollar, which fell 0.14 percent and 0.01 percent, respectively.