On Monday, Rupiah Strengthened To Rp14,855 Per US Dollar

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The rupiah exchange rate on the spot market opened up slightly on trading Monday, May 18. The rupiah opened up 0.03 percent or 5 points to a level of Rp14,855 per United States dollar (US).

Monex Investindo Futures Research Head Ariston Tjendra said positive sentiment was seen returning to the financial market this morning.

The market has responded positively to the lockdown that was opened in several countries such as in the European region, parts of the US, China, South Korea, Hong Kong, Vietnam, and others, along with the reduced number of deaths and the number of positive cases in the pandemic country.

"This positive sentiment can also help strengthen the rupiah today towards Rp14,800-14,750 per US dollar," Ariston told VOI.

The strengthening of the rupiah against the US dollar was also helped by the large stimulus issued by the US Central Bank which increased the liquidity of the US dollar in the market. The Fed has spent approximately 2 trillion US dollars for the purchase of bonds.

"However, the market is still wary of the potential for a second wave of pandemic after the easing of lockdowns and worsening economic data due to the outbreak which could suppress positive sentiment," he explained.

He estimates that today's rupiah will be in the range of IDR 14,750-15,000 per US dollar. This morning, currency movements in the region also tend to vary.

The Singapore dollar became the currency with the highest strengthening after rising 0.15 percent against the US dollar. Following that, the Philippine peso and Thai baht both gained 0.06 percent. Then there was the South Korean won and the Taiwan dollar which both appreciated 0.02 percent.

Meanwhile, the Malaysian ringgit became the currency with the deepest weakness in Asia after dropping 0.07 percent. Next came the Japanese yen, which fell 0.04 percent. China's yuan is also in the red after a 0.03 percent correction. This was followed by the Hong Kong dollar, which edged down 0.01 percent.

Rupiah illustration