CIDISS. The exchange rate of the rupiah against the US dollar (US) rose significantly in spot market trading today, Wednesday 7 November 2018. The rupiah continues to be strong to strengthen in the range of 1% before the greenback and become king in Asia. closed at Rp 14,565 or up 1.6 percent from the previous day of Rp 14,803 per US dollar. At the close of trading Calculated a week, the rupiah exchange rate even appreciated 2.76% compared to the previous week’s closing trade position.
The strengthening of the rupiah can be predicted before the spot market. Signs of rupiah appreciation have been seen in the Non-Deliverable Forwards (NDF) market. Opened the spot market with a gain of 0.17%. As the market progressed, the rupiah was increasingly craze.
Based on Reuters data, the rupiah in the past week has continued to show a strengthening rally since 2 November 2018. The strengthening of the rupiah is a continuation of the effect of the implementation of the Domestic Non-Deliverable Forward (DNDF) facility by Bank Indonesia. “I see this rupiah strengthening is still a continuation of the response “The market is positive for DNDF facilities issued by Bank Indonesia,” said Economist from the University of Indonesia, Fithra Faisal, Wednesday (11/07/2018).
In addition, the strengthening of the rupiah today was also driven by the market response to the mid-term elections in the US, where there was an estimate that the Democratic Party would lead the seats in the House of Representatives and the US Senate. According to Fithra, if the Democratic Party wins this election, then it is likely that parliament has the power to restrain US President Donald Trump’s foreign policy which is often controversial. “For example, non-tariff policies. That’s a lot of support from the Republic. Now, if Democrats can win, then Trump can no longer arbitrarily issue his foreign policy, “he said.
By: Rikky, S *)