TEMPO.CO, Jakarta - US dollar index reportedly plunged after President Donald Trump decided to withdraw from the Trans-Pacific Partnership (TPP). “It could be a sign that Trump does not prefer a strong dollar,” Samuel Sekuritas analyst Rangga Cipta said in a written statement received by Tempo on Tuesday, January 24, 2017.
Rangga noted that Donald Trump had planned to cut taxes to boost U.S. manufacturing; the U.S. Treasury yields also reportedly declined.
Meanwhile, reports said the rupiah continues to rise sharply since the first day of trading following Donald Trump’s inauguration. It closed at 13,372 against the greenback yesterday.
According to Rangga, the shock that many had feared earlier did not materialize. “Dollar index continues to weaken as of early this morning, making rooms for the rupiah to keep rising,” he said.
Stronger rupiah, Rangga said, is in line with lower state bond (SUN) yields, despite the negative sentiment that shadowed Jakarta composite index (JCI). “It might relate to the prospect of slow growth due to limited government spending owing to the lack of revenue,” he said.
GHOIDA RAHMAH
