Tuesday Morning Rupiah Strengthens Approaching Rp.13,000

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The rupiah exchange rate was opened stronger on trading Tuesday, June 16. The rupiah opened up 37 points to a level of Rp14,078 per US dollar (US).

Monex Investindo Futures Head of Research, Ariston Tjendra said, the US Central Bank, this morning, issued a new stimulus policy aimed at helping US companies through the pandemic.

"The Fed launched a US corporate bond purchase program on the secondary market with a budget of up to US $ 750 billion. This policy seems to have pushed the US dollar down because it boosted the liquidity of the currency," Ariston told VOI.

He added that the US central bank's stimulus also gave positive sentiment to risk assets. This action by the Fed temporarily closed market concerns over the increasing spread of the COVID-19 outbreak and the second wave (second wave).

"The rupiah has the potential to strengthen against the US dollar due to the Fed's policy. The potential for strengthening to the support range of Rp14,000 with potential resistance at Rp14,150 per US dollar." he explained.

This morning, the movement of the rupiah was in line with currencies in the region, which are majority in the green zone. The South Korean won led the region's gains after gaining 0.70 percent.

Followed by the Taiwan dollar which strengthened 0.33 percent. Furthermore, there is the Philippine peso which managed to climb 0.32 percent.

Then, the Malaysian ringgit and Singapore dollar strengthened respectively 0.25 percent and 0.15 percent. Next there was the Chinese yuan which appreciated 0.13 percent and the Hong Kong dollar which slightly strengthened by 0.003 percent.

Meanwhile, the Japanese yen became the currency with the deepest weakness in Asia after dropping 0.009 percent. The same thing happened to the Thai bath which also edged down 0.006 percent against the US dollar.