Rupiah Expected to Gain over Indonesia's Improving Covid Situations
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6 September 2021 12:00 WIB
TEMPO.CO, Jakarta - The Jakarta interbank rate for the rupiah begins to climb at the start of this week, gaining 16 bps or 0.11% to trade for Rp14,247 per US dollar. Contributing factors to the gain included the under-performing data of the United States (US) workforce, as well as the improving Covid situation in Indonesia.
"On Friday last week, US employment data—the non-farm payrolls—was well below market expectations, causing market doubts over the timing of [The Fed's] monetary tightening policies—whether it is tapering or interest hike," money market analyst Ariston Tjendra said on Monday , September 6.
Ariston said that the situation creates am opportunity for the rupiah to gain against the greenbuck.
"There is also the development of Covid-19 cases in Indonesia, which continues to improve, which helps give a positive boost to the rupiah," he said.
On Sunday, September 5, Indonesia logged 5,403 new Covid-19 infections, bringing the total caseload to 4.13 million. Meanwhile, 66.78 million of the population have received the first doses of vaccines, and 38.22 million people got their second shots. The Indonesian government is targeting to inoculate 208 million.
Ariston predicted the rupiah to gain today, moving between Rp14,200 and Rp14,230 per US dollar, with a potential to resist at Rp14,300 per dollar.
ANTARA
