Internasional - Sluggish Dollar Index, IDR Strengthened Thinly in Early Trading

Internasional Kastra Jatim - Sluggish Dollar Index, IDR Strengthened Thinly in Early Trading

Internasional Kastra Jatim - Based on Bloomberg data at 09.04 WIB, the (IDR) rupiah exchange rate on the spot market was observed to have strengthened 8 points or 0.05 percent to the level of Rp14,147 per US dollar. The rupiah (idr) exchange rate moved slightly stronger at the start of trading today, Tuesday (29/12/2020), amidst the weakening US dollar index.

Based on Bloomberg data at 09.04 WIB, the rupiah exchange rate on the spot market was observed to have strengthened 8 points or 0.05 percent to the level of Rp14,147 per US dollar

At the same time, the US dollar index which tracks the movement of the greenback against six other major currencies was observed to have weakened 0.142 points or 0.16 percent to the level of 90.195.

Internasional Kastra Jatim - Sluggish Dollar Index, IDR Strengthened Thinly in Early Trading

In yesterday’s trade, Monday (28/12/2020), the Garuda parking currency was at the level of IDR 14,155 per US dollar, strengthening 0.32 percent or 45 points. The performance was the second best gain among Asian currencies, just below the South Korean won, which strengthened 0.42 percent.

Director of TRFX Garuda Berjangka Ibrahim said that the strengthening of the rupiah (IDR) is predicted to continue in today’s trading and move in the range of IDR 14,130 – IDR 14,180 per US dollar.

Internasional Kastra Jatim - Sluggish Dollar Index, IDR Strengthened Thinly in Early Trading

Internasional Kastra Jatim - “The US jumbo stimulus makes liquidity available in the market abundant, which will weaken the US dollar and become a strengthening momentum for risk assets, including the rupiah,” he explained.

Ibrahim said the strengthening of the rupiah was supported by reports that US President Donald Trump signed a $ 2.3 trillion pandemic aid and expenditure package, which was approved by the House of Representatives and the Senate the previous week.

“Trump’s signature prevents the partial closure of the federal government and will return unemployment benefits to Americans who have lost their jobs due to the Covid-19 pandemic,” Ibrahim said.

For information, US President Donald Trump approved a package of handling corona and government funding worth US $ 2.3 trillion. The US $ 900 billion aid package has been approved by Congress after months of negotiations. It is part of a US $ 2.3 trillion expenditure package that includes US $ 1.4 trillion in normal federal government spending.

Sluggish Dollar Index - In addition, Ibrahim explained that the market responded positively to the presence of Law Number 11 of 2020 concerning Job Creation, after the Covid-19 pandemic which initially received many opposition from both labor activists and students, now it continues to bring blessings.