Movement of the rupiah against the United States dollar (US) was observed to strengthen. In line with the movement of the Composite Stock Price Index (CSPI) recorded in the green zone. Quoting Bloomberg, Monday, July 13, 2020, the rupiah rose 65 points to Rp14,370 per USD.
Then, noted Yahoo Finance, Garuda's currency strengthened 13 points to Rp14,365 per USD. When compared to last week's trade which was in the position of Rp14,435 per USD, the rupiah has experienced a movement in strengthening.
Compared to the opening of trades that had touched the level of Rp14,399 per USD. Last week the rupiah continued to move weakened to 40 points, equivalent to 0.28 percent. While the range of motion of the rupiah is at Rp14,399 per USD-Rp14,465 per USD.
While quoting Yahoo Finance data, the rupiah traded at the level of Rp14,175 per USD. Also, based on the Jakarta Interbank Spot Dollar Rate (Jisdor) reference rate, the rupiah is able to be in the position of Rp. 14,501 per USD.
Rupiah Strengthens in the US and Chinese Trade Wars
On the other hand, JCI was opened up 38.9 points, or 0.77 percent, to 5,070. The trading volume of 1.7 billion shares with a value of Rp1, 1 trillion. The frequency of shares was 153 thousand, 234 shares went up, 95 shares went down, and 145 shares were immovable.
JCI in today's trading is predicted to be in the green zone. JCI movement will follow the positive global markets. "We expect the JCI to return to the opportunity to strengthen following the global market," said Samuel Sekuritas Indonesia's Analyst team, in his research results, Monday, July 13, 2020.
The rupiah exchange rate on the spot market this afternoon, Monday (7/13) strengthened 0.07% to the level of Rp. 14,425 per US dollar. The Rupiah strengthened amid the heated US trade war with China.
Not only the rupiah, but the majority of Asian currencies also strengthened this afternoon. Citing Bloomberg, the Hong Kong dollar rose 0.03%, the Singapore dollar 0.04%, the Taian dollar 0.22%, the South Korean won 0.32%, the Philippine peso 0.08%, the Indian rupee 0.01%, and the ringgit Malaysia 0.03%.
The Japanese yen, Chinese yuan, and Thai baht weakened 0.11%, 0.04%, and 0.06% respectively. The Jakarta Interbank Spot Dollar Rate reference rate published by Bank Indonesia at 10:00 WIB also placed the rupiah strengthened by 15 points compared to yesterday at the level of Rp 14,486.
The US-China Trade Agreement was Signed Earlier in the Year
Permata Bank economist Josua Pardede said that US President Donald Trump's statement regarding trade cooperation undermined market optimism. "According to Trump the second phase of a trade agreement between the US and China is unlikely to happen," Josua said on Monday (7/13).
The opportunity for the second phase of the agreement was damaged by the corona virus originating from China. Trump assesses that the spread of the corona virus throughout the world, including the US, occurs because China cannot stop the plague.
That also caused the US dollar index to weaken. At the time of writing, the US dollar index fell 0.01% to 96.64. In fact, said Josua, initially US stock market investors were optimistic about the progress reports related to the Covid-19 drug.
One drug company stated that patients given the Remdesivir drug had a lower risk of death compared to patients given standard care. "This statement from the drug company encourages optimism regarding future corona patient care," he said.
Before Covid-19 hit the world, the first phase of a trade agreement between the US and China was signed on January 15, 2020. The initial trade agreement was expected to ease the trade war that lasted for about two years and affected the economies of countries in the world.
