Rupiah gains 0.08 percent before first-quarter GDP announcement

Rupiah gains 0.08 percent before first-quarter GDP announcement

The Indonesian Rupiah and the US dollar. (Illust./ANTARA)

Jakarta (ANTARA) - The Indonesian rupiah advanced 0.08 percent against the US dollar in the Jakarta interbank market on Tuesday morning before the announcement of the country's first-quarter national gross domestic product (GDP).

At 9:43 a.m. local time, the rupiah rose 12 points, or 0.08 percent, to Rp15,088 per US dollar as compared to Rp15,100 per US dollar earlier.

Chief of Research and Education of Monex Investindo Futures Ariston Tjendra noted that the overnight rise in the US share index and crude prices seemed to bring about an improvement in the money market sentiment this morning.

"The positive sentiment arose from the US plan to ease its lockdown policy along with the steady development of COVID-19 positive cases despite fears that the easing of the lockdown policy will cause a second round of COVID-19 outbreak," he explained.

According to Tjendra, the strengthening crude prices showed that the market had begun to see the potential of economic recovery in the near future.

On the internal front, the market awaits the announcement of the national economic growth that is projected to reach 4.04 percent year-on-year.

"If economic growth is higher than expected, it will help strengthen the rupiah today," he stated.

Tjendra has forecast the rupiah to potentially climb to Rp14,800 against the US dollar, with a resistance level of Rp15,150 per US dollar.

The rupiah plummeted 218 points, or 1.47 percent, to close at Rp15,100 per dollar early this week.

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