The rupiah exchange rate at the close of trading today in Jakarta strengthened by 9 points or 0.05 percent to Rp16,787 per US dollar from the previous Rp16,796 per US dollar.
According to currency observer and Director of Profit Forexindo Berjangka Ibrahim Assuabi, this strengthening was influenced by US President Donald Trump's decision not to impose a 145 percent tariff on electronic goods from China.
"The move offers some relief to large US companies with large import exposure to China," he said in a written statement in Jakarta, Monday.
Reporting from Anadolu Agency, the US government exempted around 20 electronic goods products such as smartphones, computers, routers , semiconductor chips , and other similar devices from reciprocal tariffs applied to other countries, including China.
However, the US President is preparing to announce a separate import tariff on electronics of 20 percent.
Trump's statement on this matter has made investors increasingly wary, considering that China retaliated with a 125 percent tariff policy after the US imposed a 145 percent tariff throughout last week.
“The horrific trade war between the world’s largest economies is expected to shake global supply chains and economic growth, with at least a 50 percent chance of a US recession this year,” Ibrahim said.