The US dollar seems to come under pressure, although the negative sentiment and market fear surrounding the COVID-19 pandemic cast a shadow on the movement of risk assets.Jakarta (ANTARA) - The Indonesian rupiah weakened against the US dollar on Tuesday morning, as the spread of the COVID-19 pandemic cast a shadow on risk assets.
The rupiah traded 20 points or 0.2 percent lower to touch Rp13,923 per dollar at 9:36 a.m. local time on Tuesday after closing at Rp13,895 per dollar earlier.
"The US dollar seems to come under pressure, although the negative sentiment and market fear surrounding the COVID-19 pandemic cast a shadow on the movement of risk assets," Chief of Research and Education of Monex Investindo Futures Ariston Tjendra stated here on Tuesday.
The US dollar index on Tuesday morning remained unchanged as the day before at 89.
Ariston has projected that the rupiah to possibly strengthen on Tuesday, citing potential depreciation of the US dollar ahead.
"The rupiah may strengthen, fueled by the expectation of continued US fiscal stimulus and the US central bank's insistence on keeping the benchmark rate at a low level," he remarked.
US president-elect Joe Biden’s agenda to revise taxation rules, boost stimulus, and control infrastructure spending currently hinges on twin Senate runoffs on Tuesday local time in Georgia State to determine which party controls the Senate.
Ariston forecast the rupiah to move in the range of Rp13,800 to Rp14,000 per dollar at the end of 2020.
The rupiah closed 155 points or 1.1 percent higher to reach Rp13,895 per dollar on Monday evening as compared to the previous close of Rp14,050.
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