JAKARTA - After the long holiday at the end of October, the rupiah exchange rate on the spot market moved to weaken at the opening of trading in early November. The rupiah opened down 25 points to a level of Rp14,650 per US dollar (US).
The rupiah has become the currency with the deepest weakness in the Asia Pacific region. Monex Investindo Futures Head Researcher, Ariston Tjendra said, several negative sentiments overshadowed price movements on financial markets today.
"The increasing cases of COVID-19 transmission and prompting lockdowns in several European countries have encouraged this negative sentiment. The implementation of lockdowns will disrupt economic recovery," Ariston told VOI.
According to him, this has the potential to encourage the weakening of the rupiah against the US dollar because the market is looking for safety in the currency of Uncle Sam's country.
"In addition, the postponed US fiscal stimulus will also encourage market players to seek safe assets," he said.
As for domestic sentiment, said Ariston, the market is wary of the demonstration against the Job Creation Law (Ciptaker) which will take place today.
"The potential for rupiah depreciation today is in the range of Rp. 14,600-14,750 per US dollar," he explained.
Until 09.00 WIB, currencies in Asia were mixed. The Malaysian ringgit became the region's biggest strengthening currency after gaining 0.10 percent.
Followed by the Chinese yuan which rose 0.08 percent and the South Korean won which strengthened 0.07 percent against the US dollar.
Next there was the Thai baht which lifted 0.04 percent and the Taiwan dollar which edged up 0.01 percent this morning.
Meanwhile, the Philippine peso is one level better than the rupiah after weakening 0.13 percent against the US dollar. Then there is the Hong Kong dollar and the Japanese yen which both fell 0.04 percent in early trading.
Meanwhile, the Japanese yen was seen slightly weakening 0.02 percent.
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