Thursday's Rupiah Strengthened By 5 Points To Rp14,078 Per US Dollar

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The rupiah exchange rate on the spot market closed slightly higher on trading Thursday, 18 June. The rupiah strengthened 5 points or 0.04 percent to the level of Rp14,078 per US dollar (US).

Head of Research at Monex Investindo Futures, Ariston Tjendra said, according to expectations BI would cut its benchmark interest rate to 4.25 percent, which might provide positive sentiment for the rupiah because the cut could help boost Indonesia's economic activity.

"But on the other hand, the market is still wary of the increasing spread of the COVID-19 virus and the second wave which could reduce economic activity again," Ariston told VOI.

Regional geopolitical tensions in Asia between North and South Korea as well as China and India, also helped to hold back the strengthening of the rupiah against the US dollar.

This afternoon, the rupiah strengthened along with the majority of other Asian currencies. The Korean won led the strengthening of Asian currencies against the US dollar by strengthening o. 47 percent, followed by the Malaysian ringgit which rose 0.16 percent, the Singapore dollar strengthened 0.12 percent.

Then the Chinese yuan strengthened 0.11 percent, the Thai baht strengthened 0.09 percent, the Taiwan dollar strengthened 0.05 percent and the Indian rupee strengthened 0.04 percent against the US dollar.

Meanwhile the Hong Kong dollar, Japanese yen and the Philippine peso weakened against the US dollar by weakening 0.003 percent, 0.01 percent and 0.24 percent, respectively.