As the "Phase One" negotiation between the U.S and China continues, IDR is benefited. The drawback is, the value depends on the raging trade war. (Image via Market Bisnis)

'Phase One' negotiation closing in, IDR soars to Rp14,094/USD

On Thursday’s foreign exchange (forex) spot market opening, the Indonesian Rupiah (IDR) is seen strengthening at Rp14,095 against the U.S Dollar (USD). The rate strengthened by 0.08 percent, compared to Wednesday’s rate at Rp14,120/USD. For today, IDR is moving around Rp14,050 - Rp14,120/USD.

Today, most currencies in Asia – ASEAN regions are strengthening against the USD. S. Korea Won (KRW) strengthened by 0.50 percent, Philippines Peso (PHP) 0.25 percent, both New Taiwan Dollar (TWD) and Malaysian Ringgit strengthened by 0.05 percent, and Singaporean Dollar (SGD) strengthened a bit by 0.03 percent.

Only Japanese Yen and Thai Baht that weakened against the USD by 0.05 and 0.03 percent respectively.

The same could also be said to the currencies in the developed nation's regions. Both Great Britain Pound sterling (GBP) and European Union Euro (EUR) strengthened by 0.03 percent, followed by the Canadian Dollar (CAD) which strengthened by 0.11 percent.

Unfortunately, the Australian Dollar (AUD) weakened instead by 0.11 percent against the USD.

Indonesian forex experts explained that the strengthening of the IDR was due to the positive sentiment shown in the “Phase One” negotiation between the U.S and China. Despite the tension from the consent of Hong Kong rights and Xinjiang bills by the U.S, the negotiation is still underway as reported by Bloomberg.

Even more, the negotiation has covered about the tariff deletion. Therefore, the market saw it as a signal that the agreement is around the corner.

Besides the positive “Phase One” agreement, the release of non-farm employment change data by ADP and non-manufacturing report by ISM. The poor statistics hence also gave blows to the USD.

However, the forex experts still warn that any negative statement could overturn the forex rate.

Source: https://bit.ly/36eTagP