Rupiah strengthens amid high demand for US dollar

Rupiah strengthens amid high demand for US dollar

Jakarta (ANTARA) - The rupiah exchange rate traded between banks in Jakarta on Tuesday afternoon strengthened amid the high demand for the US dollar.

The rupiah rose 6 points to Rp14,223 per US dollar from Rp14,229 per US dollar.

"Amid the current global uncertainty, the US dollar is indeed considered the most profitable in the market. So, the potential for strengthening the rupiah is also limited," said Monex Investindo Futures analyst Dini Nurhadi Yasyi in Jakarta.

According to Yasyi, the ability to strengthen the rupiah remains limited because the interest of market participants in the US dollar is still high. In fact, domestic inflation was relatively stable and US retail sales data was also relatively poor but the demand for the US dollar still remained high.

"This is because the US dollar is considered a 'safe haven' and still has good prospects, especially compared to other major countries. Meanwhile, the Eurozone is still burdened by its economic slowdown, especially after inflation slowed down," said Yasyi.

For now, the strengthening and weakening of the rupiah are expected to be limited.

The rupiah exchange rate opened at Rp. 14,220 this morning. Throughout the day, it was in the range of Rp. 14,220 per US dollar to Rp. 14,244 per US dollar.

Meanwhile, Bank Indonesia's middle exchange rate on Tuesday showed that the rupiah weakened to Rp. 14,237 per US dollar compared to the previous day, where it was Rp. 14,231 per US dollar.