The Indonesian currency opened 42 points higher, or 0.29 percent, to reach Rp14,393 per US dollar, from Rp14,435 during the previous trade’s closure.
The rupiah can potentially strengthen today following the positive sentiment of global market players toward risky assets. The Asian stock index also opened positive this morning, a money market observer Ariston Tjensdra remarked here on Thursday.
“The positive sentiment was triggered by growing expectations on the global economic recovery. In addition, the 10-year US treasury note that dipped below 1.6 percent also led to the sentiment,” he noted.
The yield on the 10-year US treasury tanked to 1.57 percent, as private payrolls grew by 742,000, from 565,000 earlier on April, albeit falling short of market players’ expectations of 800,000.
“On the contrary, the rupiah is possibly curbed from strengthening, as Indonesia’s economic growth is projected to stagnate during the second quarter. It is also led by decreasing consumption owing to the homecoming exodus (mudik) ban,” he pointed out.
Tjensdra remarked that the rupiah is currently projected to strengthen to Rp14,380 per US dollar toward a resistance level averaging Rp14,430 per US dollar.
On Wednesday (May 5), the rupiah closed five points lower, or 0.03 percent, to Rp14,435 per US dollar as compared to Rp14,430 per US dollar at the previous trade’s closure.
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