The US-China Conflict Makes The Rupiah The Strongest Currency In The Asia Pacific

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The rupiah exchange rate on the spot market opened up significantly on trading Monday, 27 July. The rupiah opened and shot 108 points or 0.74 percent to the level of Rp14,503 per US dollar (US).

Monex Investindo Futures Head of Research, Ariston Tjendra, said that the US dollar seemed to be weakening against emerging market currencies and major world currencies this morning.

"The weakening is because the market is worried about the economic recovery in the US which could be hampered by the continued increase in cases of the transmission of the COVID-19 virus in the US and the conflict between the US and China which could spread to the trade affairs of the two countries," Arsiton told VOI.

In addition, he said, the potential for the issuance of a new stimulus policy by the US government worth US $ 1 trillion would also help weaken the US dollar.

"Today the Rupiah has the potential to strengthen to the range of Rp14,500-14,700 per US dollar," said Ariston.

Majority Strengthen

This morning, currencies in the Asia Pacific region moved higher against the US dollar, led by the rupiah, followed by the Japanese yen which appreciated 0.42 percent.

The South Korean won continued to rise by 0.35 percent. The Taiwan dollar and the Chinese yuan gained 0.26 percent and 0.23 percent, respectively.

The Philippine peso is seen rising 0.22 percent. The Thai baht and Malaysian ringgit were also strong, gaining 0.17 percent and 0.16 percent, respectively.

The Singapore dollar was in the last order of strengthening by lifting up 0.15 percent against the US dollar.

Meanwhile, the only currency in the Asia Pacific that weakened was the Indian rupee, which depreciated by 0.09 percent.