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Rupiah Strengthens as Unemployment Increases in the US

Indonesian Rupiah
Indonesian Rupiah

JAKARTA – The rupiah exchange rate, which was transacted between banks in Jakarta on Thursday (26/11) morning, moved stronger in line with the increasing number of unemployed in the United States (US). At 9.41 WIB, the rupiah had strengthened 29 points or 0.2 percent to the position of IDR 14,115 per US dollar compared to the previous day’s IDR 14,144 per US dollar.

“The US dollar appears to be under pressure against major currencies such as the euro, pound sterling, and yen. Due to the rising weekly US unemployment benefit claims report. Which means the number of unemployed has increased,” said Ariston Tjendra. Head of Research and Education at Monex Investindo Futures in Jakarta, Thursday (26 / 11).

US initial jobless benefits claims data increased to 778,000 claims in November 2020 compared to October’s 748,000 claims. “This indicates the US economy is still under pressure due to the pandemic,” said Ariston.

The strengthening of the rupiah was triggered by the US economy which is still sluggish due to the pandemic

In addition, continued Ariston, the minutes of the US central bank’s monetary meeting. The Federal Reserve (Fed), released this morning also showed the view that the US economy still needs a lot of stimulus to recover from the pandemic.

The US dollar index is currently moving closer to a 2020 low of 91.74. The position is currently at 91.93.

“The weakening condition of the US dollar index. Might trigger the strengthening of the rupiah against the US dollar today,” said Ariston.

Ariston estimates that today the rupiah will move in the range of IDR 14,100 per US dollar to IDR 14,180 per US dollar. On Wednesday (25/11), the rupiah closed up 11 points or 0.08 percent to Rp 14,144 per US dollar. Compared to the previous day’s Rp 14,155 per US dollar.

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