Wednesday Rupiah Strengthened, Gaining 20 Points To Rp15,060 Per US Dollar

Illustration. (Photo: Bank Indonesia)

JAKARTA - The rupiah exchange rate on the spot market opened higher this morning, Wednesday, May 6. The rupiah opened up 20 points to a level of Rp15,060 per US dollar (US).

Head of Research at Monex Investindo Futures, Ariston Tjendra, said market sentiment was somewhat mixed today. It can be seen from the price of risky assets this morning, where there are positive moves and some are under pressure.

"The pressure is on risky assets because the market is still worried about the negative impact the outbreak will have on the global economy," Ariston told VOI.

He added that the market is also worried about an increase in the outbreak after easing the lockdown. Besides that, the tension between the US and China is also a concern for the market because it could trigger a new trade war.

"Meanwhile, positive sentiment came from the rebound in the WTI crude oil price which was already above 20 US dollars because production cuts had begun and this is an early indication of recovery in demand.

"The market also positively welcomes the easing of the lockdown because the economy will be active again," he said.

With these two attractive sentiments, according to him, the rupiah may move not too far from yesterday's closing. The rupiah's potential today is in the range of IDR 15,000-15,150 per US dollar.

In Asia, the majority of Asian virtual money weakened against the US dollar, led by the Korean won which weakened 0.22 percent against the US dollar, followed by the Thai baht weakening 0.13 percent, the Taiwan dollar weakened 0.11 percent, the Malaysian ringgit weakened 0.10 percent, The Singapore dollar weakened 0.09 percent and the Philippine peso was down 0.07 percent against the US dollar.

While other Asian currencies strengthened against the US dollar, namely the Japanese yen, Indian rupee and Hong Kong dollar.