Rupiah Opens in Green as Pressure Mounts on Greenback

TEMPO.CO, Jakarta - The rupiah interbank exchange rate in Jakarta went up by 34 points at the start of Thursday's trading session to begin trading at Rp13,281 per US dollar—up from its previous position at Rp13,315 per US dollar. 

"The US dollar is depreciating against the majority of Asian currencies—including the rupiah—as US consumer confidence index for the month of June indicates a decrease," said an economist for Samuel Sekuritas, Rangga Cipta, in Jakarta on Thursday. 

Amid the situation, continued Rangga, there was still a chance for the rupiah to continue its uptrend, and thus remained in the green throughout Thursday's session—although such uptrend would remain limited as demand for the US dollar was still high in the domestic market. 

Rangga also said that the rupiah's appreciation was also helped by the improving economic performance observed in China, which put a significant amount of pressure on the US dollar. This morning, Chinese authorities will be releasing its monthly retail performance figures as well as its industrial production output figures, which were expected to show some signs of recovery.

The head of research for NH Korindo Securities Indonesia, Reza Priyambada, added that the rupiah's uptrend was unexpectedly boosted by the appreciation of the Japanese Yen, which jumped in response to the Bank of Japan's plan to defend the currency.

Reza added that the euro was also appreciating ahead of speculations that Greece would soon clinch a deal to secure more bailout funds, following the submission of a new proposal by Greece to its creditors.

"By taking advantage of these momentum, investors are taking the opportunity to accumulate the rupiah, which is helping the rupiah resume its uptrend," said Reza.

That said, the rupiah's uptrend was short-term in nature, said Reza, who advised investors to be vigilant against a possible reversal in trend.

ANTARA