Friday Morning Rupiah Weakened To IDR 15,025 Per US Dollar

Illustration. (Photo: Bank Indonesia)

JAKARTA - Rupiah on the spot market weakened during trading Friday, May 8 morning. The rupiah is seen to have weakened 0.20 percent to a level of IDR 15,025 per US dollar.

Even though it opened lower, Head of Research at Monex Investindo Futures, Ariston Tjendra, said that the easing of the lockdown is still a boosting sentiment for risky asset prices. Although there are fears that loosening the lockdown will lead to a second wave of the COVID-19 outbreak, the world can imitate the easing of lockdowns that will not trigger new outbreak cases that have occurred in South Korea and Hong Kong.

"The news about the slowing rate of the addition of people infected with Covid-19 in several countries is also a positive sentiment," Ariston told VOI.

In addition, China's trade balance data for April, which had a surplus over the previous month's data, was also a positive sentiment. China's trade activity that is slowly recovering can sustain economic activity in other countries.

However, the market is still wary of worsening economic data due to the outbreak. According to him, the rupiah could strengthen today because of this positive sentiment. Potential strengthening to the area of IDR 14,800 with resistance in the range of IDR 15,150 per US dollar.

This morning, the rupiah became the currency with the deepest weakness in the region. Given that the majority of currencies in Asia are in the green zone.

The rupiah depreciation was accompanied by the Japanese yen, which edged down 0.03 percent. Meanwhile, the South Korean won was the highest-strengthening currency after gaining 0.69 percent against the US dollar.

Following behind the won was the Malaysian ringgit which strengthened 0.48 percent. Next there were the Thai baht and Singapore dollar which rose 0.31 percent and 0.23 percent, respectively.

Then there is the Philippine peso which also rose 0.20 percent. Followed by the Taiwan dollar and the Chinese yuan, which respectively appreciated 0.16 percent and 0.14 percent.