Safe haven assets are being hunted, the rupiah will weaken against the US dollar on Monday (5/10)

ILLUSTRATION. The market tends to turn to safe havens and this will depress the rupiah exchange rate against the US dollar.

Reporter: Hikma Dirgantara | Editor: Khomarul Hidayat

KONTAN.CO.ID – JAKARTA. The rupiah is predicted to weaken on Monday (5/10). Global Kapital Investama analyst Alwi Assegaf sees the flow of funds to safe haven will come back to continue.

Alwi said that so far, the market tends to switch to safe haven the impact of market conditions that are still full of uncertainty. Starting from the continuing spread of Covid-19, fiscal stimulus in the United States that is still being tug-of-war, until recently US President Donald Trump tested positive for Covid-19.

“All these sentiments are supporting demand safe haven and will still color the trade Monday (5/10). Not to mention, if we look at the US employment data released on Friday, it shows mixed results, but it still shows signs of a slowdown in the labor sector, “explained Alwi, Saturday (3/10).

Also Read: Within a week, the rupiah strengthened slightly by 0.05% to Rp 14,865 per US dollar

With these conditions, Alwi estimates, the flow of funds to safe haven will come back stronger. This will worsen the condition of the rupiah so that it has the opportunity to weaken the rupiah again. Alwi calculated that the rupiah would move in the range of Rp. 14,800 – Rp. 14,920 per US dollar, Monday (5/10).

Meanwhile, the rupiah on the spot market on Friday (2/10) closed down 0.2% to a level of Rp 14,865 per US dollar. Nevertheless, within a week the rupiah on the spot market still managed to record a slight gain of 0.05%.

The rupiah depreciation also occurred in the middle rate of Bank Indonesia, the rupiah weakened slightly by 0.09% to a level of Rp 14,890 per US dollar. Meanwhile, within a week, the rupiah at the JISDOR exchange rate managed to gain 0.41%.