The stimulus from the Chinese Central Bank cranks IDR up. (Image via Market Bisnis)

Chinese stimulus cranks IDR to Rp13,699

On Wednesday’s foreign exchange (forex) spot market opening, Indonesian Rupiah (IDR) is seen at Rp13,699 against the U.S Dollar (USD). The rate strengthened by 0.12 percent compared to Tuesday’s closing rate at Rp13,715/USD. For today, IDR is moving around Rp13,650 - Rp13,750/USD.

However, today, the majority of currencies in ASEAN – Asia regions weakened against the USD. Reportedly, Singaporean Dollar (SGD) weakened by 0.16 percent, Malaysian Ringgit (MYR) by 0.06 percent, the Hong Kong Dollar by 0.03 percent, and Thai Baht (THB) by 0.02 percent.

Only the Japanese Yen (JPY) joined IDR, strengthening by 0.13 percent against the USD.

On the other hand, the majority of currencies in the developed countries region also weakened against the USD. Great Britain Pound sterling (GBP) and the Canadian Dollar (CAD) both weakened by 0.01 and 0.06 percent respectively, and the Australian Dollar (AUD) by 0.10 percent.

Meanwhile, European Union Euro (EUR) remains stagnant against the USD.

Indonesian forex experts explained that the IDR’s strengthening today is caused by the stimulus given by the Chinese Central Bank. The stimulus breathed strength back to the risk assets, shown by Shanghai and Nikkei Stock Index that strengthened on Tuesday’s closing.

Not only China but the positive sentiment also came from the United States (U.S) and Australia. The U.S manufacturing index data is entering the expansion zone, while the Australian Central Bank had just announced its monetary policy on Tuesday, giving a positive economic outlook.

Source: https://bit.ly/2RZJD8N