Rupiah appreciates against US dollar over improving US manpower data

Rupiah appreciates against US dollar over improving US manpower data

Illustration. A money changer officer shows rupiah and US dollars in Jakarta ANTARA FOTO/Puspa Perwitasari)

The rupiah will potentially weaken today as the market continued to worry since the weekend following tense US-China relations, the deadlock of the second US stimulus package, and the increased transmission of COVID-19.
Jakarta (ANTARA) - The Indonesian rupiah strengthened against the US dollar in the Jakarta interbank market early this week in tandem with the improving US manpower data.

The Indonesian currency appreciated 25 points, or 0.17 percent, to trade at Rp14,600 per US dollar as compared to Rp14,625 per US dollar earlier.

"The rupiah will potentially weaken today over continued market concerns since the weekend following tense US-China relations, deadlock over the second US stimulus package, and rise in the transmission of COVID-19," Ariston Tjendra, chief of research and education of Monex Investindo Futures, stated here on Monday.

However, the US manpower data, including on non-farm payrolls and unemployment rate, released on Friday night (Aug 7), surpassed market expectation, he pointed out.

The US labor market managed to create 1.76 million additional jobs in July, higher than the consensus of 1.7 million, or nearly one-third of the increase in June at 4.8 million. Consequently, the unemployment rate fell to 10.2 percent, from 11.1 percent in June.

"This may add to the rupiah's strengthening since the positive data indicates ongoing economic recovery," he remarked.

Tjendra forecast the rupiah to potentially hover in the range of Rp14,550 per dollar to Rp14,700 per dollar.

The rupiah plunged 40 points, or 0.27 percent, to close at Rp14,625 per US dollar on Aug 7, from Rp14,585 per US dollar earlier.
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