Rupiah continues rally against dollar on Tuesday

Rupiah continues rally against dollar on Tuesday

A Bank Mandiri teller shows rupiah and dollar banknotes at the bank's branch at the parliament building ANTARA FOTO/Rivan Awal Lingga/ama

The strengthening of the US share index overnight, coupled with S&P 500 index hitting new record high, may offer a positive sentiment to the Asian money market this morning
Jakarta (ANTARA) - The Indonesian rupiah continued its rally in the Jakarta interbank market on Tuesday morning as other major regional currencies strengthened against the US dollar.

The rupiah rose 51 points, or 0.34 percent, to touch Rp14,620 per dollar during the morning trade as compared to the earlier close of Rp14,671 per dollar.

"The strengthening of the US share index overnight, coupled with S&P 500 index hitting a new record high, may offer a positive sentiment to the Asian money market this morning," Chief of the Research and Education Unit of Monex Investindo Futures Ariston Tjendra stated here on Tuesday.

The positive sentiment was fueled by an announcement on the injection of the US Food and Drug Administration (FDA)-approved blood plasma for treating COVID-19 patients.

Moreover, the plan to expedite the vaccine approval process before the US presidential election and the downward trend of COVID-19 transmission in the US since mid-August 2020 have added to the positive sentiment.

"Given the positive sentiment, the rupiah will also strengthen against the US dollar today to follow the appreciation of other emerging market currencies," he stated.

He forecast the rupiah to hover in the range of Rp14,550 to Rp14,750 per dollar on Tuesday.

The rupiah jumped 102 points, or 0.69 percent, to close at Rp14,671 per dollar on Monday (Aug 24) as compared to the earlier close of Rp14,773 per dollar. Related news: Strengthening of rupiah expected after long weekend
Related news: Rupiah strengthens to Rp14,750 against US dollar on Wednesday


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