Rupiah appreciates against US dollar ahead of long weekend

Rupiah appreciates against US dollar ahead of long weekend

An employee counts rupiah and dollars at Bank Mandiri Syariah in Jakarta on April 20, 2020. (ANTARA FOTO/Nova Wahyudi/wsj.

The positive sentiment was fueled by a progress report on the test of (COVID-19) drug by Gilead Sciences and a statement by The Fed to continue to support near-zero interest rate.
Jakarta (ANTARA) - The Indonesian rupiah strengthened significantly against the US dollar in the Jakarta interbank market on Thursday to close at Rp15,000 ahead of a long weekend.

The rupiah advanced 260 points, or 1.7 percent, to Rp15,035 per US dollar, from Rp15,295 per US dollar earlier.

Research and Education Chief of Monex Investindo Futures Ariston Tjendra stated in Jakarta on Thursday that external positive sentiments from the global financial markets on Thursday morning also contributed to the rupiah’s appreciation.

"The positive sentiments were driven by a progress report on the test of (COVID-19) drug by Gilead Sciences and a statement by The Fed to continue to support the near-zero interest rate," he stated.

Positive sentiments were also fueled by the strengthening global crude prices and the good profit statement of big US technology companies, such as Facebook and Microsoft.

The easing of lockdown policies in several COVID-19 pandemic nations and the growing manufacturing index of China in April added to the positive sentiments, he pointed out.

The positive sentiments sent out an early signal of the global economy starting to recover, he stated.

"However, the market will always stay alert for developments on the (COVID-19) outbreak and its negative impact on the economy," he added.
Related news: Rupiah strengthens to Rp15,438 per US dollar on Friday morning

Related news: BI buoyant foreign exchange reserves to suffice in guarding rupiah


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