Jakarta, CNBC Indonesia – The rupiah exchange rate strengthened against the United States dollar (US) on Tuesday (17/11/2020). The news of the corona virus vaccine from Moderna, made the rupiah a champion in Asia.
Launching data from Refinitiv, the rupiah opened trading at the level of Rp. 14,000 / US $, jumping 0.71% on the spot market. Unfortunately, the “sacred” or psychological level is the strongest today, after which the rupiah was corrected to Rp. 14,065 / US $.
At the close of trading, the rupiah was at the level of Rp. 14,030 / US $, strengthening 0.5% in the market spot.
With this strengthening, the rupiah became the Asian champion today. As of 15:07 WIB, only the Chinese yuan was close to strengthening the rupiah by 0.31%.
Following is the movement of the US dollar against major Asian currencies.
Today’s strengthening of the rupiah continues the positive performance early last week. Even if we look back, the rupiah has posted a strengthening in 6 consecutive weeks.
This happened after Joseph ‘Joe’ Biden won the US presidential election against the incumbent Donald Trump. Biden’s victory is considered beneficial for emerging market countries like Indonesia, because the US-China trade war is likely to end, or at least not get worse.
Then the pharmaceutical company from the US, Pfizer, in collaboration with BioNTech from Germany, last Monday (9/11/2020) announced that its vaccine was effective at warding off disease caused by the corona virus (Covid-19) by more than 90% without dangerous side effects.
After Pfizer, now it is the turn of another US pharmaceutical company, Moderna, yesterday to announce the same thing.
CEO of Moderna, Stephane Bancel, said yesterday that the preliminary results of the phase III trial of his vaccine were effective at preventing Covid-19 by more than 94%.
“This is a momentum of improvement in the development of our Covid-19 vaccine candidate. Since early January we have been pursuing this virus as intensely as possible to protect humans around the world as much as possible. The positive analysis of the phase III study provides early clinical validation that a vaccine can prevent Covid-19. , “he said.
This news has prompted market players’ sentiment to recover and chase down risky assets. Investment flows back into the country.
On the stock market, foreign investors are buying net today (net buy) amounting to Rp 679 billion, reversing net sales (net sell) yesterday Rp 525 billion in the regular market.
Over the past week, foreign net buy was even more than Rp. 4 trillion.
Meanwhile in the bond market, yield The 10-year National Valuation Letter (SBN) tenor today dropped 7.5 basis points to 6.201%.
To know movement yield compared to the reverse of the SBN price, when yield down the price goes up, and vice versa. When prices rise, it means that there is buying action on the bond market, which can be an indication of an inflow of capital.
CNBC INDONESIA RESEARCH TEAM
(pap / pap)
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