If Weakens Again, Rupiah Will KO 7 Days in a Row!

Jakarta, CNBC Indonesia – The exchange rate of the rupiah against the United States dollar (US) seems to be weakening in the spot market trading today. Signs of rupiah depreciation are already visible in the Non-Deliverable Market (NDF).

The following is the US dollar exchange rate on the NDF market after the close of the spot trade yesterday compared to today, Friday (07/03/2020), citing Refinitiv data:

Period of time

July 2 Exchange Rate (15:05 WIB)

July 3 Exchange Rate (07:03 WIB)

1 week

Rp. 14,443.2

Rp 14.66.2

1 month

Rp.14,563.2

IDR 14,585.7

2 months

Rp. 14,659.2

Rp. 14,740

3 months

Rp. 14,749.2

Rp. 14,771.93

6 months

Rp 14,992.2

Rp.15,009.25

9 months

Rp.15,235.2

Rp.15,236,1

1 year

Rp.15,453.2

Rp.15,509

2 years

Rp 16,373.7

IDR 16,369

The following is the Domestic NDF (DNDF) exchange rate which was last updated on July 2 at 2:54 PM WIB:

Period of time

Course

1 month

Rp 14,485

3 months

IDR 14,500

NDF is an instrument that trades currencies for a certain period of time with certain exchange rates. Previously the NDF market did not yet exist in Indonesia, only available in international financial centers such as Singapore, Hong Kong, New York, or London.

NDF markets often affect the psychological formation of prices in the spot market. Therefore, the exchange rate in NDF is not uncommon for the spot market. Whereas the previous NDF was purely played by foreign investors, who might not have studied the fundamental conditions of the Indonesian economy.

Bank Indonesia (BI) then formed the DNDF market. Although the tenor provided is incomplete, it is expected to continue to grow in the future.

That way, the psychological formation of the rupiah on the spot market is expected to be more rational because the NDF instruments are in the country. The rupiah in the spot market does not need to always hit the NDF market which is fully formed by foreign markets.

CNBC INDONESIA RESEARCH TEAM

Watch the related videos below:

(aji/aji)


.

Share on facebook
Facebook
Share on pinterest
Pinterest
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.