Indonesian Rupiah Strengthen to 72 Points at the Close of Trading

Jakarta, MINA – In closing trading Wednesday afternoon, the Indonesian Rupiah closed up 72 points at Rp14,772 per US dollar from the previous close at Rp14,844 per US dollar.

The Director of PT TRFX Garuda Berjangka Ibrahim Assuaibi said this strengthening is the most beautiful gift for the long holiday as well as entering the Hijri New Year.

“In trading on Friday, the market may be off because they are on leave together. For next Monday, there is a possibility that the Rupiah will still strengthen at the level of Rp14,720-14,820, “said Ibrahim as quoted from Anadoli Agency (AA) on Wednesday.

He explained that the factor affecting the movement of the rupiah from the external side was the new agreement by the US federal government which was still difficult to understand.

Ibrahim said US House of Representatives Speaker Nancy Pelosi said on Tuesday that Democrats in Congress are willing to cut the coronavirus aid bill in half to get a deal on new laws with the White House and Republicans.

On the other hand, President Donald Trump on Tuesday said a major change in voting in the November presidential election could cause so much trouble that officials might have to do a re-vote.

“Separately, the market is showing a limited reaction to Democrats officially nominating Joe Biden for president. Biden promises his election will improve America which is hit by the pandemic, “said Ibrahim

Meanwhile, investors are awaiting the release of the minutes of the Federal Open Market Committee (FOMC) meeting on August 28-29, with speculation the Fed will adopt an average inflation target, which will seek to push inflation above 2 percent for some time.

Then, Ibrahim explained that internally, what influenced the movement of the rupiah was the Indonesian Balance of Payment or Balance of Payment in the second quarter of 2020 which recorded a surplus after the deficit in the previous quarter. (T/RE1)

Mi’raj News Agency (MINA)