Market players are awaiting the release of data on foreign exchange reserves, retail sales, and the Indonesian consumer confidence index. They are also observing the US’ monetary policy tapering, as the US employment data improves.
Jakarta (ANTARA) - The rupiah’s exchange rate to the US dollar traded at the Jakarta interbank market strengthened before the release of data on the foreign exchange reserves in May 2021.

At 9:59 a.m. local time, the Indonesian currency opened 26 points higher, or 0.18 percent, to Rp14,269 per US dollar, from Rp14,295 per US dollar during the closing of the previous trade.

“Market players are awaiting the release of data on foreign exchange reserves, retail sales, and the Indonesian consumer confidence index. They are also observing the US’ monetary policy tapering, as the US employment data improves,” according to the NH Korindo Security research team here on Monday.

The employment data is one of The Fed’s benchmarks to issue its monetary policy apart from the inflation data. High inflation and the strengthened US employment data have made the tapering even more real.

Speculations on The Fed’s stimulus reduction resurfaced following the statement of its president of Philadelphia Patrick Harker that today was the right time to reduce quantitative easing.

Automatic Data Processing Inc (ADP) had earlier reported that sectors in the US, apart from the agricultural sector, had successfully absorbed as many as 978 thousand workers in May 2021 as compared to 654 thousand during the corresponding month.

Domestically, the government has planned to amend the value added tax (VAT) Law. One of the changes pertains to the VAT rate.

In the fifth revised document of Law No. 6 of 1983 on General Provisions and Tax Procedures, the VAT rate regulation was proposed to be increased to 12 percent, from the current 10 percent.

The rupiah’s exchange rate was relatively flat during last week, with the spot’s exchange rate having dipped 0.07 percent to Rp14,295 per US dollar. Meanwhile, JISDOR’s exchange rate fell 0.13 percent to Rp14,316 per US dollar.

On Friday (June 4), the rupiah closed 10 points lower, or 0.07 percent, to Rp14,295 per US dollar as compared to Rp14,285 per US dollar during the previous trade’s closure. Related news: Rupiah projected to be stable following Fed Chair's statement
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Translator: Juwita Trisna Rahayu, Citro
Editor: Suharto
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