The rupiah exchange rate in the spot market trading this afternoon, Wednesday (8/7) rose 0.21% to the level of Rp 14,410 per US dollar. The strengthening of the rupiah is more caused by technical factors.

The rupiah strengthened against the US dollar along with the Taiwan dollar which rose 0.13%, the South Korean won 0.01%, the Philippine peso 0.07%, and the Malaysian ringgit 0.05%. While the majority of Asian currencies weakened. Citing Bloomberg, the Japanese yen fell 0.06%, the Hong Kong dollar 0.01%, the Singapore dollar 0.07%, the Indian rupee 0.11%, the Chinese yuan 0.05%, and the Thai baht 0.03%. 

The Jakarta Interbank Spot Dollar Rate reference rate also places the rupiah at the level of Rp 14,460 per US dollar. The figure was published by Bank Indonesia at 10:00 WIB. Valbury Asia Futures analyst Lukman Leong said that global and domestic economic data were still minimal at this time. 

"So that this is only a technical movement," Lukman told Katadata.co.id, Wednesday (8/7). From the fundamental side, there is no recent news that affects exchange rate movements. However, the US dollar has tended to weaken lately.

Dollar Tends To Strengthen Against G-10 Countries

As for when this news was written, the US dollar index rose 0.11% to 96.99. Uncle Sam's currency also tends to strengthen against G-10 countries such as the euro strengthened 0.03%, the British pound 0.25%, the Australian dollar 0.22%, the Canadian dollar 0.04%, and the Swiss franc 0, 05%.

Meanwhile, HFX Futures Analyst Ady Phangestu assesses that market players' sentiment is currently worsening. This can be seen from the global stock exchanges weakening again, starting from Europe and the US yesterday and in Asia this morning. 

"Market participants' sentiment has deteriorated due to the second wave of viruses," Ady told Katadata.co.id at different times. The World Health Organization warns of the possibility of a significant increase in the number of deaths. This is after the acceleration of the addition of cases of viral diseases in June.

Launch page Worldometers, cases of global deaths due to Covid-19 reached 547,120 people from the number of positive cases of 11.97 million. Thus the death rate is 4.57% of the total cases. While in Indonesia, additional new cases of corona daily re-set a record today as many as 1,853 cases. Case progress can be seen in the database below.

Majority of Asian Currencies Increase

Earlier the rupiah exchange rate opened up 0.49% to 14,105 per US dollar in trading on the spot market this morning. Rupiah strengthened as US sentiment for durable goods orders in May were better than expected.

Quoting Bloomberg, the rupiah moved slightly weakened from the opening position to the level of 14,109 per US dollar until 09.30 WIB. "Strengthening is seen in the price of risky assets such as Asian stock indexes and emerging market exchange rates against the US dollar," said Vice President of Monex Investindo Futures Ariston Tjnedra.

The majority of Asian currencies this morning helped to strengthen against the US dollar. Malaysian ringgit rose 0.03%, Thai baht 0.01%, Indian rupee 0.08%, Philippine peso 0.13%, South Korean won 0.53%, Singapore dollar 0.04%, and Japanese yen 0.01 %. While the Hong Kong dollar was stagnant and the Chinese yuan strengthened 0.28%.

Overnight, the US released data on durable goods orders in May which grew 15.8% after a 17.7% decline. This proves the economy began to expand again after the opening of the economy amid a pandemic.

Ariston estimates that the rupiah in today's trading will move in the same range as yesterday. The rupiah exchange rate has the potential to strengthen slightly following the sentiment this morning in the range of Rp 14,050 to Rp 14,200 per US dollar.