Thanks to The Feds, Indonesian Rupiah is strengthening once more. (Image via: ANTARA FOTO/Rosa Panggabean)

Approaching Rp13,000s, Rupiah Rises Thanks to the Feds

Alfonsus Adi Putra
Market & Investment
Foreign Exchange & Interest Rate
Jul 04, 2019
1997
Garuda is soaring higher into the sky. At the opening of Jakarta Interbank Spot Dollar Rate (JISDOR) on Thursday (4/7), Indonesian Rupiah (IDR) showed its might increasing by 0.07% to Rp14,114 per U.S. Dollar (USD), compared to Wednesday’s rate Rp14,129.

The increase of IDR’s rate was not caused by Indonesia but due to the U.S. condition in the midst of trade war. The trade war might trigger an economic slowdown in the U.S., causing the Federal Reserve to cut its benchmark interest rate. In order for The Feds to be much sure to cut down its benchmark interest rate, both The Feds and all marketers are waiting for the latest employment data no later than this weekend.

Head of research at Monex Investindo, Ariston Tjandra, pointed out that the U.S. Dollar forex rate is going to worsen until the upcoming weekends because U.S. obligation’s yield with 10-year tenor had fallen into a new level of low which is 1.96%.

Nonetheless, this sentiment was predicted to last only a moment since the market will focus to trade war once more, and the U.S. is going to slap tariffs on the European Union for all imported American goods worth of US$4 billion.

IDR is not the only currency that came strong today. For 3 consecutive days, Japanese Yen (JPY) lasted above USD on Tuesday, and Wednesday by 0.51% & 0.06% respectively. Today, JPY still strengthens itself by 0.06%, rising to ¥107.79 per USD. In addition, it is caused also by the awful performance input of U.S. employment data.

Most Asian currencies are also beating USD. Malaysian Ringgit (MYR) is strengthening by 0,01%, Thai Baht (THB) by 0,04%, Philippines Peso (PHP) by 0,05%, and Singaporean Dollar (SGD) by 0,05%. Moreover, Hong Kong Dollar (HKD) also strengthens by 0,09%, and South Korean Won (KRW) by 0,25%.

Rising in currencies was also noted among European currency and Australian Dollar (AUD). Great Britain Pound sterling (GBP) is strengthening by 0,06%, Euro (EUR) by 0,09%, & Australian Dollar by 0,06%.

Source: https://www.cnnindonesia.com/ekonomi/20190704083924-78-408925/rupiah-terdongkrak-peluang-penurunan-suku-bunga-as

Market , Forex , Indonesia , IDR , U.S. , USD , Investment