Wednesday , October 28 2020

Rupiah Still Stifled US-China Trade War


JAKARTA, AYOBANDUNG.COM– The movement of the exchange rate (exchange rate) of rupiah that was transacted between banks in Jakarta on Friday (11/08/2019) morning tended to be restrained even though the sentiments of the trade war began to improve.

The movement of the rupiah on Friday (8/11) this morning weakened by 26 points or 0.19 percent to Rp14,021 per US dollar compared to the previous position of Rp13,995 per US dollar.

Economist Samuel Aset Management, Lana Soelistianingsih, said here on Friday (8/11) that Beijing had agreed to coordinate a reduction in tariffs and with the same value at the time of the signing of the first phase.

"This statement is a relief to the market because previously there was an indication of the potential cancellation of the signatures when the signing of the US-China trade agreement was announced when it was postponed to December," he said.

He added this morning (8/11) strong currencies in the Asian region such as the Japanese yen and the Hong Kong dollar strengthened against the US dollar.

"The strengthening of the strong Asian currencies should have been a positive sentiment for the rupiah, but the rupiah has weakened even though stability is still maintained," he said.

He said that rupiah stability was maintained in line with Indonesia's increasing foreign exchange reserves. Based on Bank Indonesia records, the position of foreign exchange reserves as of October 2019 was recorded at 126.7 billion US dollars, up from September 2019 at 124.3 billion US dollars

"The position of the foreign exchange reserves will help support the rupiah and the stability of the rupiah in the middle of US dollar foreign exchange demand which usually increases towards the end of the year," he said.

He predicted the possibility of the weakening of the rupiah to continue until the end of trading this afternoon to the range of Rp14,000 to Rp14,030 per US dollar.

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