www.rancakmedia.com – The Rupiah was successfully closed. The US Dollar strengthened. The exchange rate of the rupiah against the US dollar closed higher again on Tuesday (June 4, 2022) amidst the rally in the greenback.
Based on Bloomberg data, the exchange rate of the rupiah in the spot market closed 10 points or 0.07% to the level of Rp 14,505 per US dollar. At that time, the US dollar index seemed to have strengthened 0.019 points or 0.02% to 92.614.
Director of TRFX Garuda Berjangka Ibrahim Ascustombi in his report explained that the strengthening of the exchange rate of the rupiah occurred in the midst of an increase in the US dollar. This follows a strong signal from the development of the US economy and the ongoing vaccination process.
Rupiah successfully closed the US Dollar strengthened. Investors are concentrating on infrastructure stimulant ideas proposed by US President Joe Biden, which include increasing corporate taxes to pay for new fees.
Joe Biden would be prepared to put his $2 trillion infrastructure idea into motion without the support of Republican lawmakers if he couldn’t reach a bipartisan agreement.
In Europe, Germany announced a vaccination target of 20% of its community in early May, meaning the largest country in the European Union lags far behind the United States in percentage terms.
Rupiah was successfully closed. In addition, the European Union is still in crisis due to the lockdown related to the 3rd wave of the Covid-19 virus. At that time, the UK on Monday announced the idea of reopening some public spaces such as hairdressers, gyms and pubs next week.
The UK revised its 4Q 2022 GDP growth from 1.0% to 1.3% quarterly last week. The sign of Indonesia’s economic reconditioning is now domestic.
Indonesia has started vaccination to coincide with the Extension of the 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 that the rupiah will fluctuate but will close higher at a distance of Rp. 14,480 to Rp. 14,520 per US dollar.
However, the closing of the rupiah strengthened compared to the last afternoon’s movement which had once reached Rp. 14,303 per USD. Even though it had declined slightly, the rupiah was able to strengthen until it closed at the level of Rp. 14,267 per USD.
“The dollar index strengthened today, illustrating the improvement in the US economy,” said Director of PT TRFX Garuda Berjangka Ibrahim Ascustombi in Jakarta, taken by Antara, Thursday (4/3).
The dollar index rose to 91.2 as US bond yields rose again and stirred up capital inflows in the US. The yield on the 10-year US bond rose to 1.47% after declining to 1.41%. Last week, US bond yields rose to 1.6%.
At that time, Federal Reserve (Fed) Governor 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 US bond sell-off and a change in their assessment of the economy as they approach the Fed’s next face-to-face.
