Rupiah to potentially close higher at year-end

Jakarta The rupiah will potentially close higher during the year-end trading at the Jakarta interbank market on the back of global positive sentiments.

The Indonesian currency opened 35 points higher, or 0.25 percent, at Rp14,095 per dollar at 9:27 a.m. local time on Wednesday, as compared to Rp14,130 per dollar the day before.

"The rupiah's exchange rate is still likely to strengthen at the end of this year owing to positive external sentiments, including the release of US fiscal stimulus and its prospects as well as optimism about the Brexit agreement," Chief of Research and Education of Monex Investindo Futures Ariston Tjendra stated in Jakarta on Wednesday

Tjendra noted that the US dollar index also appeared to weaken on Wednesday morning and returned to the 89 range.

Market expectations persist over the US releasing another fiscal stimulus next year to boost recovery of the US economy that has come under pressure owing to the COVID-19 pandemic.

"Although the vaccination has begun, the vaccine has not been distributed evenly and widely, so transmission rate in the US is still high. Although the pandemic is not yet over, the government will push stimulus programs," he stated.

Tjendra has projected the rupiah to trade in the range of Rp14,080 to Rp14,120 per dollar on Wednesday.

The rupiah closed 25 points higher, or 0.18 percent, at Rp14,130 per dollar on Tuesday, as compared to Rp14,155 per dollar a day earlier.

Source: Antara News

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