Back Muscled, Rupiah Is Opened To Strengthen 80 Points To Rp14,455 Per US Dollar

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The rupiah exchange rate on the spot market was strong again at the opening of trading. On Wednesday, July 29, the rupiah opened up 80 points or 0.55 percent to the level of Rp14,455 per US dollar (US).

This morning the rupiah looks the strongest against the US dollar compared to other currencies in the Asia Pacific region. Head of Research at Monex Investindo Futures, Ariston Tjendra, said that the pressure on the US dollar did not seem to have gone away ahead of the announcement of the results of the US central bank meeting at dawn.

"The market hopes that the Fed will still sound a pessimistic tone about the US economic recovery in the midst of the pandemic," Ariston told VOI.

In addition, the Fed last night announced to extend the loan facility stimulus program, which will end in September 2020, until the end of 2020.

"The Fed's attitude indicates that the US economy will still be under further pressure which will put pressure on the US dollar," he explained.

On the other hand, the announcement also supports the strengthening of the prices of risky assets as it aims to help economic recovery. According to him, the rupiah has the potential to strengthen today with a range of Rp14,400-14,600 per US dollar.

Until 09.00 WIB, currency movements in Asia tended to be mixed. The Taiwan dollar, which has always been strong this week, is now below the rupiah after strengthening 0.11 percent against the US dollar.

Followed by the Malaysian ringgit which rose 0.10 percent and the South Korean won which rose 0.05 percent. Next there is the Singapore dollar which is seen slightly up 0.04 percent against the US dollar this morning.

Meanwhile, the Thai baht became the region's deepest weaker currency after dropping 0.13 percent. Furthermore, there was the Philippine peso which was corrected by 0.05 percent and the Chinese yuan which was eroded by 0.03 percent.

Then, the Japanese yen was also in the red zone after slightly falling 0.02 percent. The same thing happened to the Hong Kong dollar which weakened 0.001 percent against the US dollar this morning.