Rupiah Opens Weak over Fears of Covid-19 Second Wave



Petir Garda Bhwana

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  • TEMPO.CO, Jakarta - The rupiah's interbank transaction rate on Monday, June 22, was corrected by fears of a second wave of Covid-19 pandemic. The rupiah opened with 45bps or 0.32 percent correction at Rp14,145 per US dollar, down from last week's closing rate of Rp14,100.

    "News of increasing transmission rate of Covid-19 in the US, German and China over the weekend could act as a negative sentiment for risky assets in today's trade," Monex Investindo Futures's head of research and education Ariston Tjendra said in Jakarta, Monday.

    Among those risky assets, is the rupiah.

    The three mentioned countries experienced new case spikes after reopening the economy, and so markets are focusing on the effects of new normal and lockdown lifts.

    Ariston predicts the rupiah to weaken towards a resistance level of Rp14,200 per US dollar, with a support range around Rp14,050.

    On Friday, the rupiah closed 0.16 percent down to 14,100 per US dollar.

    Read also: Rupiah Weakens over Fed Governor's Warning