Rupiah Successfully Closed US Dollar Strengthens

Lovata Andrean

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Rancakmedia.com – The exchange rate of the rupiah against the US dollar closed stronger again on Tuesday (4 June 2021) amidst a rally in the greenback currency, see information about the rupiah successfully closing in the following article review.

Based on Bloomberg data, the exchange rate of the rupiah on the spot market closed 10 points or 0,07% to Rp. 14.505 per US dollar. At that time, the US dollar index was seen strengthening 0,019 points or 0,02% to 92,614.

Director of TRFX Garuda Berjangka, Ibrahim Assuaibi, in his report explained that the strengthening of the exchange rate of the rupiah occurred amidst an increase in the US dollar. This follows strong signals from US economic development and the ongoing vaccination process.

Investors are concentrating on the infrastructure stimulant proposed by US President Joe Biden, which includes corporate tax increases to pay for new costs.

Joe Biden will be ready to move forward with his $2 trillion infrastructure plan without support from Republican lawmakers if he can't reach bipartisan agreement.

In Europe, Germany announced a target of vaccinating 20% ​​of its community in early May, meaning that the largest country in the European Union is far behind the United States in terms of percentage.

Apart from that, the European Union is still in crisis due to the lockdown related to the 3rd wave of the Covid-19 virus. At that time, England on Monday announced the idea of ​​reopening several public spaces such as hairdressers, gyms and pubs next week.

The UK made a revision to GDP development in the fourth quarter of 4 from 2020% to 1,0% quarterly at the end of last week. Signs of the reconditioning of the Indonesian economy are now within the country.

Indonesia has started vaccination to coincide with the Extension of Implementation of Community Activities (PPKM). On the other hand, people return to work, social welfare payments stop, and public consumption increases.

This is a sign that the recovery phase has begun. For tomorrow's trading, Ibrahim predicts the rupiah will fluctuate but will close stronger in the range of IDR 14.480 to IDR 14.520 per US dollar.

However, the closing rupiah strengthened compared to the previous afternoon movement which had reached IDR 14.303 per USD. Even though it had declined slightly, the rupiah was able to strengthen until it closed at Rp. 14.267 per USD.

"The dollar index strengthened today, reflecting the improvement in the US economy," said the Director PT TRFX Garuda Ibrahim Assuaibi futures in Jakarta, taken by Antara, Thursday (4/3).

The dollar index rose to 91,2 after US bond yields rose again and stimulated capital inflows in the US. The 10-year US bond yield rose to 1,47% after declining to 1,41%. Last week, US bond yields rose to 1,6%.

At that time, the Governor of the Reserve Federation (Fed) Jerome Powell will give a virtual speech at the Wall Street Journal Jobs Summit. Investors will be wary of signs of anxiety over the recent sell-off in US bonds and changes in their assessment of the economy as the Fed approaches its next meeting.

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Lovata Andrean

Hi, I'm Lovata, I'm not Ai but I am a content writer for SEO, Technology, Finance, Travel, Cooking Recipes and others. I hope this can be useful for all my friends. Thanks