Sunday, 16 May 2021 | 16:36 WIB

Rupiah Edges Down 0.07 Percent on Tuesday Trade Closing

Rupiah Edges Down 0.07 Percent on Tuesday Trade Closing (flickr)

JAKARTA, NETRALNEWS.COM - Rupiah exchange rate at the inter-bank level in Jakarta is closed lower on Tuesday (04/13/2021), in line with rising expectations of economic recovery in the United States (US).

The rupiah is closed ten points lower or by 0.07 percent down to reach IDR14,605 ​​per US dollar, as compared to IDR14,595 per dollar in the previous position.

"Rising hopes for rapid economic recovery from COVID-19, which has an impact on US treasury yields, are keeping investors away from risky assets," said Ibrahim Assuaibi, Director of PT TRFX Garuda Berjangka in Jakarta, on Tuesday.

The yield on 10-year US bonds is currently at 1.69 percent, an increase from the previous closing position of 1.67 percent.

Meanwhile, the highly anticipated US inflation data and comments from the US Federal Reserve served to raise recovery hopes higher.

A survey published on Monday (04/12/2021) by The Federal Reserve Bank of New York said that US consumers raised their inflation expectations again in March following gradual rise in recent months, and they are more positive about the jobs market.

Meanwhile, Boston Federal Reserve President Eric Rosengren said in an interview on Monday (04/12/2021) that the US economy could see a substantial turnaround in 2021 thanks to accommodative monetary and fiscal policies. However, he added that the jobs market still has a lot of room to develop.

In addition, the Fed Governor Jerome Powell is also scheduled to speak at the Economic Club of Washington event on Wednesday (04/4/2021).

Domestically, the decline in positive cases of COVID-19 in recent weeks has further calmed the market.

With the decline in COVID-19 patients, the public and businesses are relieved, as all activities, both industry, tourism and others, will return to normal.

Moreover, the public has begun to be vaccinated so that it adds to the boost for the Indonesian government to continue to be optimistic that COVID-19 will end soon.

Meanwhile, the rupiah opened lower in the morning to IDR14,613 per dollar. During the day, the rupiah moved in the range of IDR14,605 to IDR14,628 per dollar.

In addition, the Jakarta Interbank Spot Dollar Rate (JISDOR) on Tuesday weakened to IDR14,648 per dollar, as compared to the position at the previous closing trade of IDR14,631 per dollar.