Jakarta, CNBC Indonesia – Rupiah exchange rate against the United States (US) dollar weak moves in spot market trading this morning. What can be done, many negative sentiments are hurting the country’s currency.
On Friday (4/6/2021), US$ 1 was equivalent to Rp. 14,290 when the spot market opened. The Rupiah weakened slightly by 0.07% compared to the closing position of the previous day’s trading.
Today, quite a lot of negative sentiment that could weaken the rupiah. One, investors’ interest in risky assets is low, which is reflected in the correction on the New York stock exchange.
Early this morning, Indonesian time, the Dow Jones Industrial Average (DJIA) fell 0.07%. While the S&P 500 and Nasdaq Composite lost 0.36% and 1.03%, respectively.
Two, there is shocking news from the White House. US President Joseph ‘Joe’ Biden signed a law prohibiting its citizens from investing in Chinese companies accused of having ties to the military.
There are 59 companies on this list, some of which are Aviation Industry Corp of China (AVIC), China Mobile Communication Group, China National Offshore Oil Corp (CNOOC), Hangzhou Hikvision Digital Technology Co Ltd, Huawei Technologies Ltd, and Semiconductor Manufacturing International. Corp (SMIC). If the company is a public company, then US citizens are prohibited from buying its shares.
“I find that there is a use of Chinese surveillance technology outside their territory to facilitate repression and serious human rights abuses,” Biden said.
In fact, it is not impossible that the number of Chinese companies that are on the ‘black list’ will increase. A senior government official whispered to Reuters that in the next few months there would be government regulation (executive order) to accommodate additional company names.
The US-China tensions, which were tapering off when the Superpower was led by Donald Trump, have not subsided. Under Biden’s command, Washington is still ‘fierce’ against Beijing.
The US-China feud has had a major impact on the global economy because both are the biggest economic powers under the atmosphere. If the US and China inhibit each other, the global supply chain will be disrupted, thereby suppressing the exports of various countries, including Indonesia.
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