Tuesday, 24 March 2020 21:51

Rupiah appreciates over positive sentiment toward risk assets

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A teller shows the Indonesian rupiah and US dollar banknotes (ANTARA FOTO) A teller shows the Indonesian rupiah and US dollar banknotes (ANTARA FOTO)

Jakarta - The Indonesian rupiah strengthened against the US dollar in the Jakarta interbank market on Tuesday morning on the back of positive sentiment toward risk assets.

The rupiah increased 85 points, or 0.51 percent, to Rp16,490 per US dollar at 9:10 a.m. local time on Tuesday, from Rp16,575 per US dollar earlier.

"The US Central Bank's sudden announcement yesterday night to release a credit program to US businesspersons through the banking system has lent a positive sentiment to some of the risk assets," Monex Investindo Futures chief researcher Ariston stated.

On Tuesday morning, Asian share indexes, including Nikkei and Kospi strengthened, and so did the Australian share index and the Futures SAP 500 share index.

In the meantime, the currencies of emerging markets also strengthened against the US dollar.  

"This will also lend a positive sentiment to the rupiah today. The rupiah may strengthen to the level of Rp16,000," he remarked.

Moreover, the market awaits the US Senate's approval of a US$2-trillion stimulus on Tuesday. If the stimulus is approved, it will further strengthen the rupiah, he noted.

He has forecast the rupiah to trade at between Rp16,000 and Rp16,575 per US dollar on Tuesday. (ANTARA) 

Read 73 times Last modified on Wednesday, 25 March 2020 11:00