Rupiah is prone to falling due to the strengthening of the US dollar
The rupiah exchange rate was opened at the position of Rp14,432 per US dollar (US) in today’s spot market trading, Thursday (9/8). This position strengthened from the close on Wednesday (8/8) which was at the level of Rp14,439 per US dollar.
In line with the rupiah, the majority of currencies in the Asian region also strengthened before the US dollar. The Japanese yen strengthened 0.16 percent, Thai baht 0.22 percent, South Korean won 0.10 percent, and Malaysian ringgit 0.01 percent.
Despite strengthening, Senior CSA Research Institute Analyst Reza Priyambada said that rupiah movements were still vulnerable.
The rupiah is vulnerable to falling due to the weakening of China’s renminbi and euro Europe yesterday. The weakening of the renminbi and euro is expected to make the US dollar move in the green zone.
Renmimbi China weakened amid plans by the government of the Bamboo Curtain State to reply to import duties on US products.
While the European euro weakened due to continued discussion of the UK’s exit from the European Union (Britain Exit / Brexit).
“Again, it is appreciated that the US dollar can withstand the possibility of the rupiah to be able to move positively. Even market participants will take advantage of these conditions by increasing demand for the US dollar,” he said.
For this reason, in order to sustain the strengthening of the rupiah which is more durable, support is needed from internal sentiment. Unfortunately, internal sentiment is still minimal, after the Central Statistics Agency (BPS) released economic growth figures last Monday.
(Source: CNN Indonesia)