Investors are hunting for the US dollar as a safe haven asset

ILLUSTRATION. Money changer employees calculate US dollars./pho KONTAN / Carolus Agus Waluyo / 22/09/2020.

Reporter: Danielisa Putriadita | Editor: Handoyo.

KONTAN.CO.ID – JAKARTA. The rupiah has the potential to weaken to Rp 15,000 per US dollar (US) if external conditions become more gloomy and investors tend to seek the US dollar as an asset. safe haven.

Global Kapital Investama analyst Alwi Assegaf said that the movement of the rupiah exchange rate until the end of the year would be heavily influenced by external sentiment, especially the US. One of them is the increase in the number of positive corona patients in the US which makes the US dollar strengthen above other major currencies.

Moreover, the second wave and policies are also rife in the European region lockdown re-applied. As a result, investors tend to hunt down the US dollar as an asset safe haven. In the midst of high uncertainty, investors tend to turn to cash instead of holding certain assets. “The US dollar has higher liquidity than gold, stocks and other commodities,” Alwi said, Friday (25/9).

As a result, investors holding US dollars will benefit greatly. Apart from the US dollar, Alwi said the yen is also attractive to have as an asset safe haven.

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In the future, market players are still waiting for the outcome of negotiations on the procurement of an additional US $ 2.2 trillion stimulus in the US. However, until now the stimulus negotiations are still tough and have triggered investors to hunt for US dollars as an asset safe haven.

Alwi said Rp 15,000 per US dollar would be a psychological area. Now the sentiment that is expected to hold back the rate of weakening of the rupiah is a vaccine from China that has been approved by WHO. Alwi projects a year-end range of IDR 14,650 per US dollar to IDR 15,200 per US dollar.

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