The Dollar Runs Up, Makes The Rupiah Slip 95 Points To IDR 14,378 Per US Dollar

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The rupiah exchange rate on the spot market was closed lower on trading Thursday, July 2. The rupiah was unable to withstand the strength of the US dollar, so the Garuda currency had to weaken 0.67 percent or 95 points to a level of Rp14,378 per US dollar (US).

Head of Research at Monex Investindo Futures, Ariston Tjendra, previously said that negative sentiment was still overshadowing the movement of the rupiah. In addition to market concerns with the continuing increase in COVID-19 cases in the world and the second wave, the market also received new negative sentiment from the approval of the law on sanctions for US banks doing business with Chinese officials who implemented the Hong Kong security law.

This means that the sanctions law has been approved by two opposing parties in the US. There are concerns that the sanctions law will spread to the trade affairs of the two countries, the US and China.

Ariston explained, the minutes of the Fed meeting released earlier this morning also gave an indication of economic conditions that were still under pressure for a long time due to COVID-19.

This afternoon, currencies in the Asian region moved mixed against the US dollar. Rupiah depreciation was led, and was followed by the Thai baht which depreciated 0.19 percent. Then, the Malaysian ringgit fell 0.01 percent.

Meanwhile, the stronger currency was led by the Indian rupee which soared 0.76 percent. Followed by the South Korean won which strengthened 0.28 percent.

Then, the Philippine peso and the Taiwan dollar strengthened 0.16 percent and 0.12 percent, respectively. The Singapore dollar, Japanese yen and Chinese yuan both gained 0.07 percent.