IDR and USD. (Image via Market Bisnis)

Brexit deal supports IDR to Rp14,157/USD

On Monday's foreign exchange (forex) spot market opening, the Indonesian Rupiah (IDR) is seen at Rp14,157 against the U.S Dollar (USD). The rate got stronger by 0.30 percent, compared to the previous rate at Rp14,200/USD.

This morning, the currencies of Asian countries reacted variously toward USD. Reportedly, Hong Kong Dollar (HKD) strengthened narrowly by 0.01 percent, Singaporean Dollar (SGD) by 0.11 percent, New Taiwan Dollar (TWD) by 0.02 percent, S. Korean Won (KRW) by 0.17 percent, Indian Rupee (INR) by 0.29 percent, & Chinese Yuan (RMB) by 0.15 percent. On the other hand, the Japanese Yen (JPY) weakened by 0.14 percent, Malaysian Ringgit by 0.02 percent, and Thai Baht (THB) by 0.29 percent.

Meanwhile, the majority of currencies of developed countries weakened instead against the USD. Reportedly, the Great Britain Pound sterling (GBP) went down by 0.10 percent, Australian Dollar (AUD) by 0.03 percent, and Swiss Franc (CHF) by 0.02 percent. Only the Canadian Dollar (CAD) managed to prevail against the USD by 0.14 percent.

Indonesian forex analyst and Head of Research at Monex Investindo, Ariston Tjendra, stated that the strengthening of IDR is caused by the promising expectation of the U.S's second-stage fiscal stimulus realization at US$900 billion. Nonetheless, the current President of the U.S, Donald Trump, is likely to reject the stimulus amount and aim for the bigger figure.

On the other hand, the Brexit deal with the European Union (EU) also supported the risk asset, including IDR. Reportedly, Great Britain is leaving the EU's market in 5 days, as both blocs already released the finished draft of the post-Brexit agreement last week while waiting for the parliament's ratification. Therefore, Ariston projected the movement of IDR at Rp14,100 - Rp14,250/USD for today.