Rupiah strengthens as Chinese economy starts to recover

Rupiah strengthens as Chinese economy starts to recover

An employee counts US dollar banknotes at the Plaza Mandiri branch in Jakarta on March 18, 2020. ANTARA PHOTO/Aprillio Akbar/wsj.

Today, the rupiah may receive a positive sentiment from the data of the Chinese government's manufacturing and non-manufacturing indexes for March that exceed the expectation and enter the expansion zone,  52 vs 44.9 and 52.3 vs 42.1.
Jakarta (ANTARA) - The Indonesian rupiah strengthened against the US dollar in the Jakarta interbank market on Tuesday morning, as the Chinese economy started to recover.

The rupiah rose 13 points, or 0.08 percent, to trade at Rp16,325 at 9:41 a.m. local time as compared to Rp16,388 earlier.

"Today, the rupiah may receive a positive sentiment from the data of the Chinese government's manufacturing and non-manufacturing indexes for March that exceed the expectation and enter the expansion zone, 52 vs 44.9 and 52.3 vs 42.1," Monex Investindo Futures chief researcher Ariston stated in Jakarta on Tuesday,

The data suggested that the Chinese economy started to recover from the COVID-19 pandemic, he remarked.

China's economic recovery may help the economies of partner countries that require Chinese materials and market, he noted.

The rising US share index may also lend a positive sentiment to the rupiah on Tuesday. The Dow Jones Index rose 3.19 percent on Monday, March 30, 2020.

The spread of the coronavirus outbreak will pose a negative sentiment to impact the rupiah's appreciation, as the main problem remains unsettled, he stated.

He has forecast the rupiah to trade at Rp16,200 to Rp16,400 per US dollar on Tuesday.

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