Rupiah slips over investors' preference for safe-haven assets

Rupiah slips over investors' preference for safe-haven assets

Photo archives - A BNI employee counts US dollar banknotes at the BNI branch in Malawai, South Jakarta (ANTARA FOTO/Yudhi Mahatma)

It seems that the sentiment had not shown signs of improvement. Pressure on risky assets due to the rapid spread of coronavirus outside China is still large.
Jakarta (ANTARA) - Indonesia’s rupiah dropped against the US dollar in the Jakarta interbank market on Friday morning as investors opted for safe-haven assets over fears of the impact of the coronavirus or COVID-19 outbreak

At 10:02 WIB (West Indonesia Standard Time), the rupiah fell 65 points, or 0.46 percent, to trade at Rp14,090 per US dollar, from Rp14,025 per US dollar earlier.

"It seems that the sentiment had not shown signs of improvement. The pressure is still high on risky assets owing to the rapid spread of coronavirus outside China," Monex Investindo Futures Chief Researcher Ariston Tjendra remarked in Jakarta on Thursday,

The yield on the 10-year US government bonds also continued to collapse and also hit an all-time low of 1.235 percent.

"This suggests that several investors bought the bonds as safe-haven assets," he remarked.

Tjendra has forecast the rupiah to still remain under pressure and lie in the range of Rp14,000 to Rp14,100 per US dollar on Friday.

"The rupiah will potentially weaken owing to the lack of new sentiment," he pointed out.

PT TRFX Garuda Berjangka Director Ibrahim Assuaibi also projected the rupiah to potentially come under pressure and hover in the range of Rp13,960 to Rp14,060 per US dollar on Friday.

According to the Bank Indonesia (BI) mid-rate on Friday, the rupiah depreciated to Rp14,234, from Rp14,018 per US dollar earlier. Related news: Rising concerns over COVID-19 negatively impact rupiah, IHSG

Related news: Coronavirus outbreak continues to drive rupiah to plunge


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