Jakarta - The rupiah exchange rate against the US dollar on Wednesday (18/8) has the opportunity to strengthen in line with improving market sentiment towards risky assets.

"Today the rupiah has the potential to strengthen to the range of 14,350 per dollar with potential resistance in the range of 14,400 per dollar," said money market observer Ariston Tjendra in Jakarta.

He explained that the deteriorating US retail sales data for July released last night may open speculation that tapering in the US will not be carried out soon, thus pushing the market back into risk assets.

In addition, today's trade balance data will be released for the month of July, which is expected to have a surplus of more than $2 billion, higher than the previous month.

"This surplus usually supports the strengthening of the rupiah," he explained.

However, on the other hand, the market will be wary of strengthening the US dollar due to