Rupiah strengthens as US dollar under pressure on Tuesday morning

Rupiah strengthens as US dollar under pressure on Tuesday morning

Illustration : Teller counts rupiah (ANTARA FOTO)

"The US dollar has come under pressure due to unstable signs of US economic recovery based on the US economic data released overnight. The data of manufacturing activity index for the New York region fell far short of projection."
Jakarta (ANTARA) - The Indonesian rupiah strengthened against the US dollar in the Jakarta interbank market on Tuesday morning, as the US dollar came under pressure over poor US economic data.

The rupiah rose five points, or 0.03 percent, to Rp14,790 per US dollar at 9:37 a.m. local time on Tuesday as compared to Rp14,795 per US dollar earlier.

Chief of Research and Education of Monex Investindo Futures Ariston Tjendra stated that the US dollar appeared to weaken against regional currencies on Tuesday morning.

"The US dollar has come under pressure due to unstable signs of US economic recovery based on the US economic data released overnight. The data of manufacturing activity index for the New York region fell far short of projection," he explained.

Furthermore, Tjendra conjectured that the low yields on US bonds also made the US dollar unattractive at this moment.

"The negative sentiment towards the US dollar may boost the rupiah's strengthening this morning," he remarked.

However, the market should also stay alert for factors that may exert pressure on the rupiah, including the tense US-China relations, he expounded.

"The other factor is the COVID-19 pandemic that may apply pressure on the domestic economic recovery and the balance of trade in July falling short of expectations," he stated.

Tjendra has projected the rupiah to hover within the range of Rp14,650 to Rp14,850 per dollar on Tuesday.

The rupiah plunged 20 points, or 0.14 percent, to Rp14,795 on last Friday, as compared to Rp14,775 per dollar earlier.

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