Jakarta, The Indonesia Post – The rupiah exchange rate transacted between banks in Jakarta on Thursday afternoon closed higher as the focus of market players is now on the European Central Bank (ECB) meeting.
The rupiah closed up 17 points or 0.11 percent to the position of Rp. 14,901 per US dollar compared to the position at the close of the previous trade of Rp. 14,918 per US dollar.
“The US dollar has dropped from its highest level in 20 years and market focus will now turn to the European Central Bank meeting for further signals on tightening global monetary policy,” the Monex Investindo Futures Research Team wrote in a study in Jakarta, Thursday.
Market participants are currently waiting for a rate hike by the ECB, which could support the euro and spur further declines in the dollar.
The ECB is expected to raise interest rates by 75 basis points to 1.25 percent, bringing them into positive territory for the first time in 11 years to combat high inflation.
But the central bank faces a balancing act, given that economic activity in the euro zone has slowed significantly due to the ongoing energy crisis.
In addition, the driving sentiment also came from fears over COVID-19 originating in China and a possible escalation in the Sino-American upheaval.
Recently, Reuters released news stating that Taiwanese President Tsai Ing-wen told a delegation of US lawmakers on the island that the island will continue to work with the United States to forge closer trade and economic ties.
In the morning, the rupiah opened higher to Rp14,898 per US dollar. Throughout the day the rupiah moved in the range of Rp. 14,893 per US dollar to Rp. 14,914 per US dollar.
Meanwhile, the Jakarta Interbank Spot Dollar Rate (JISDOR) exchange rate on Thursday strengthened to Rp14,905 per US dollar compared to the previous day’s position of Rp14,927 per US dollar. (mhn/bbs)
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