Rupiah Expected to Strengthen; Trades for 14,050/US$ This Week
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1 July 2019 13:03 WIB
TEMPO.CO, Jakarta - Rupiah is projected to strengthen against the US dollar this week, supported by positive internal or domestic sentiments as well as external factors.
Binaartha Sekuritas analyst Muhammad Nafan Aji Gusta predicts the rupiah will move between Rp14,050 and Rp14,275 per US dollar. "There is a bullish inside bar pattern which indicates potential strengthening for the US dollar," Nafan said on Saturday, June 30.
According to Nafan, the domestic sentiment that serves as a positive catalyst is related to inflation stability. Another positive factor is the release of data on foreign exchange reserves that affects the rupiah stability.
As for external sentiments, the main catalyst is related to the subsiding tensions of the trade war between the US and China.
"Each party seeks to hold back, so an agreement was made to stop the trade war," he said.
On Friday last week, June 28, the rupiah exchange rate on the Jakarta Interbank Spot Dollar Rate (JISDOR) was recorded at Rp14,141 per US dollar. The figure reflects a 39-bps gain from Thursday's closing rate of Rp14,180 per US dollar.
MUHAMMAD HENDARTYO
