Sunday, 05 April 2020 | 19:03 WIB

Rupiah Continues to Strengthen in Early Week

Rupiah Continues to Strengthen in Early Week (integritas)

JAKARTA, NETRALNEWS.COM - Rupiah exchange rate at the interbank level in Jakarta continues to rise early this week on the back of positive domestic and global sentiment.

The rupiah is closed gaining 99 points or 0.72 percent to IDR13,673 per US dollar, as compared to the previous day's position of IDR13,772 per US dollar.

Ibrahim Assuaibi, Director of PT Garuda Berjangka, said the easing of geopolitical tension in the Middle East resulted in global crude oil prices declining again, and even touching its lowest level at 59 dollars per barrel, which has a positive impact on the rupiah.

"We must know, that at this time Indonesia is a net oil importer in Southeast Asia. Thus, crude price hike will put pressure on the Indonesian currency. When oil prices fall, the cost of importing these commodities will go down, so that the trade balance will be more maintained, and this will have a positive impact for the rupiah currency," Ibrahim said in Jakarta, on Monday (01/13/2020).

Meanwhile, this week the market also awaits the signing of a phase one trade agreement between the US and China.

The trade war between the two countries--which has been going on since mid-2018--is expected to be over, or at least the risk of escalation will decrease again.

In a phase one trade agreement, US President Donald Trump said that a 15 percent import duty on imported products from China worth 120 billion US dollars would later be reduced to 7.5 percent.

While from the Chinese side, Trump said that China will soon start purchasing agricultural products from the US which, if totaled, will reach US $ 50 billion.

In the morning, the rupiah opened to strengthen to IDR13,744 per US dollar. Throughout the day, the rupiah moved in the range of IDR13,673 per US dollar to ISE13,744 per US dollar.

Meanwhile, the middle rate of Bank Indonesia on Monday showed that the rupiah rose to IDR13,708 per US dollar, compared to the previous day of IDR13,812 per US dollar.