Uncertainty about the US mid-term election pushed rupiah to Rp 14,768

RUPIAH - JAKARTA. The rupiah strengthened against the US dollar on Wednesday (11/07). Quoting Bloomberg at 10:20 WIB, the rupiah gained 0.25% to Rp 14,768 per US dollar.

Monex Investindo analyst Futures Faisyal said the uncertainty of midterm elections in the US caused the position of the US dollar to weaken.

On the other hand, the rupiah benefited from the easing of the Brexit issue after Britain and the European Union almost reached an agreement. For example, the European Union allows UK financial institutions to conduct activities with other European countries. "Concerns about global conflict have begun to diminish," said Faisyal.

Meanwhile, the rupiah has not received positive sentiment from within the country other than Indonesia's economic growth data in the third quarter of 2018.

Faisyal considered that the rupiah would weaken if US midterm election results showed the Republican party won the US election. Provisional calculation results with the quick-count method show Republicans leading the Democrats. Previously many predicted that the Democratic party would win the election.

"Market participants are certainly waiting for the results of the US midterm election because they will determine the direction of US economic and political policies going forward," he added.

According to Faisal, the rupiah is likely to move in the range of Rp 14,700 - Rp 14,850 per US dollar at the closing. (Translator: Barratut Taqiyyah Rafie)