Last Wednesday, 29 April 2020, the rupiah exchange rate was in the position of Rp 15,295 per USD in the spot market trading. The reference rate of the Bank Indonesia places the rupiah in the position of Rp 15,415 per US dollar or strengthens from 15,488 per US dollar on Tuesday, April 28, 2020. Rupiah leads the currency strengthening in Asia from the US dollar. Currency strengthening also happens in other countries. India’s rupee with a 0,68% increase, South Korea’s won with a 0,52% increase and Malaysia’s ringgit with a 0,47% increase. This increase is not happening in Hong Kong, where the currency rate seems stagnant.
Announced by The Jakarta Post (30/4), Josua Pardede, Bank Permata’s Economist told that the rupiah appreciation is related to the US Federal Reserve’s policy on Wednesday to hold its interest rate at the zero percent to 0.25 percent range. Other factors, written on CNN Indonesia (30/4), the current exchange rates are also influenced by the decline of lockdown in some countries, due to the coronavirus spread is continuously decreasing. China’s manufacturing starts to grow in April, which also give a positive impact on the increase in Asia’s currency rate. The current rates also give optimism to all business industries in Indonesia, including tourism and the real estate business in Bali.
The optimism seems to grow up. As mentioned, the COVID-19 spread number here in Indonesia are significantly decrease and it gives more optimism to Indonesian citizen to keep following the rules from WHO. All will be settle down only if people keep washing their hands, practicing social distancing, and staying at home for a moment.