JAKARTA, NETRALNEWS.COM - Rupiah exchange rate at the interbank level in Jakarta is closed on the rise on Wednesday (4/29/2020), in line with the positive performances of a majority of regional currencies against the US dollar.
The rupiah closed higher by 150 points or 0.97 percent to IDR15,295 per US dollar, from the previous position of IDR15,445 per US dollar.
"The markets will look at whether the US central bank, The Fed, will provide guidance on future policy directions after responding to the economic collapse caused by the COVID-19 pandemic by cutting interest rates, buying bonds, and providing support in the credit market," said Ibrahim Assuaibi, Director of PT TRFX Garuda Berjangka on Wednesday (04/29/2020).
The Fed will hold a meeting tonight, and is likely to issue a "dovish" statement, which still supports monetary easing policies to help restore the economy affected by the plague.
However, the Fed might also not change its benchmark interest rate because the stimulus policy is already large enough.
The number of positive cases of COVID-19 in the US alone reached 1.03 million cases overnight, while patients that recovered reached 142,000, and 59,266 people died.
Investors are now more focused on plans for easing lockdowns and a global economic recovery that was hit by the COVID-19 pandemic.
Domestically, the positive cases of COVID-19 in Jakarta continues to decline, which indicates the possibility of Large-Scale Social Restrictions (PSBB) measures to be relaxed in early June, and predicted to be followed by other provinces so that the economy will resume.
"This is a fresh breeze for the market and fair trade in today's trading. The flow of foreign capital returning to the forex and bond markets have strengthened the rupiah," Ibrahim said.
In the morning, the rupiah opened higher at IDR15,355 per US dollar. Throughout the day, the rupiah moved in the range of IDR15,295 per US dollar to IDR15,395 per US dollar.
Meanwhile, Bank Indonesia's middle rate on Wednesday showed that the rupiah strengthened to IDR15,415 per US dollar, as compared to the previous day at IDR15,488 per US dollar.