JAKARTA, NETRALNEWS.COM - Rupiah exchange rate at the interbank level in Jakarta on Friday is predicted to strengthen slightly amid the variety of external and domestic sentiments.
On Friday morning, the Rupiah was opened gaining 13 points or 0.09 percent to IDR14,065 per US dollar from the previous position of IDR14,078 per dollar.
"In line with expectations, BI has cut its benchmark interest rate. This certainly gives positive sentiment to the rupiah, as the benchmark trimming can help increase Indonesia's economic activities," said Head of Research and Education at Monex Investindo Futures Ariston Tjendra in Jakarta, on Friday (06/19/2020).
However, continued Ariston, the driving factor of the rupiah was not only related to the BI Rate decrease. Indonesia's currency is considered still very vulnerable to outside factors.
"At the moment there is still a tug of war between positive and negative sentiments, so that the rupiah has moved slightly lately," he said.
Ariston added that the reopening of the economy amid a pandemic gave positive sentiment to the market, including the new normal economy in Indonesia.
On the other hand, the market is still wary of the increasing spreading of the COVID-19 coronavirus and the second wave that could reduce economic activities.
"Regional geopolitical tensions in Asia between the two Koreas, as well as China and India, could also hamper rupiah's forward movements against the US dollar," said Ariston.
Ariston estimates that today's rupiah will move slightly higher to around IDR14,000 per dollar, and the potential for edging down to IDR14,100 per US dollar.
On Thursday (06/18), the rupiah rose five points or 0.04 percent to IDR14,078 per dollar from the previous position of IDR14,083 per dollar.