Progress Of COVID-19 Vaccine Research Boosted Rupiah On Tuesday To Strengthen To Rp.14,755 Per US Dollar

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The rupiah exchange rate on the spot market opened higher on trading Tuesday, July 21. The rupiah opened up 30 points or 0.20 percent to a level of Rp14,755 per United States dollar (US).

Head of Research at Monex Investindo Futures, Ariston Tjendra, said the strengthening of the rupiah was due to positive sentiment that was seen returning to the financial market this morning. The sentiment was that last night there was a report on the progress of COVID-19 vaccine research in collaboration between European biopharmaceutical company Astrazeneca and Britain's University of Oxford.

"This vaccine is capable of producing immunity and is safe during its testing period," Ariston told VOI.

This good news, according to him, reduces market concerns about the continued increase in the spread of the COVID-19 virus in the world which could hinder global economic recovery. This morning, regional currencies were seen strengthening against the US dollar, Asian stock indices also looked positive.

"The rupiah also has the potential to strengthen against the US dollar with the potential to strengthen towards Rp. 14,600 and potential resistance in the range of Rp. 14,850 per US dollar," he said.

Majority Strengthen

This morning until 09.00 WIB, the majority of currencies in the region also moved stronger. The South Korean won was the biggest strengthening currency after gaining 0.47 percent.

Followed by the Taiwan dollar which strengthened 0.25 percent and the Philippine peso which rose 0.21 percent against the US dollar. Furthermore, there was the Thai baht which managed to climb 0.11 percent and the Malaysian ringgit which appreciated 0.08 percent.

Then there is the Japanese yen which also rose 0.07 percent and the Hong Kong dollar which looks strong after slightly strengthening 0.005 percent.

Meanwhile, the Chinese yuan became the currency with the deepest weakness this morning. The Chinese yuan is seen weakening 0.04 percent.

Not alone, the position of the yuan in the red zone was accompanied by the Singapore dollar which also edged down 0.007 percent this morning.