Rupiah Is Mighty Again, Thursday Morning Strengthens To IDR 14,500

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The rupiah exchange rate on the spot market opened higher on trading Thursday, July 23. The rupiah opened up 45 points to the level of Rp14,605 per US dollar.

Based on VOI monitoring at 09:10, the rupiah continued to strengthen. The rupiah strengthened 0.44 percent or 65 points to a level of Rp14,585 per US dollar.

Head of Research at Monex Investindo Futures, Ariston Tjendra said, although it strengthened at the opening, there was negative sentiment in the form of increasing tensions between the US and China last night.

"This is related to the order to close the Chinese consulate in Houston, USA because of indications of spying. This has the potential to push down emerging market exchange rates against the US dollar," Ariston told VOI.

According to Ariston, the US government's latest decision has the potential to get a response from China and worsen relations that it is feared will spill over to trade issues.

"Poor trade relations between the world's two largest economies can slow down global economic growth," said Ariston.

In addition, he continued, the market was still worried about the transmission of the COVID-19 virus which was still increasing even though efforts to find vaccines had progressed.

"The rupiah has the potential to weaken today with a range of Rp14,600-14,800 per US dollar," he explained.

Moves Varies

This morning, currencies in the Asia Pacific region were mixed in front of the US dollar, and the strengthening was led by the rupiah. Followed by the Taiwan dollar which strengthened 0.08 percent.

The Singapore dollar is seen lifting 0.06 percent. The Malaysian ringgit was able to strengthen by 0.03 percent.

The Hong Kong dollar and the Japanese yen were both seen slightly up 0.01 percent.

Meanwhile, the currency weakened against the US dollar, led by the South Korean won which weakened 0.22 percent. Followed by the Chinese yuan and the Philippine peso, which both depreciated 0.07 percent.

Meanwhile the Indian rupee fell 0.02 percent. And the Thai baht looks slightly weaker 0.01 percent.