IDR is weakened by the novel coronavirus outbreak that just turned into a pandemic. (Image via Market Bisnis)

COVID-19 becomes pandemic, IDR falters to Rp14,399/USD

On Thursday’s foreign exchange (forex) spot market opening, Indonesian Rupiah (IDR) is seen at Rp14,399 against the U.S Dollar (USD). The rate weakened by 0.17 percent compared to Wednesday’s closing rate at Rp14,374/USD. For today, IDR is moving around Rp14,350 - Rp14,450/USD.

This morning, the majority of currencies in ASEAN – Asia regions weakened against the USD. Reportedly, Malaysian Ringgit (MYR) weakened by 0.33 percent, S. Korean Won (KRW) by 0.15 percent, Thai Baht (THB) by 0.06 percent, Singaporean Dollar (SGD) by 0.05 percent, Turkish Lira (TRY) by 0.05 percent, Chinese Yuan (RMB) by 0.04 percent, Japanese Yen (JPY) by 0.03 percent, and the Hong Kong Dollar (HKD) by 0.02 percent.

Only Indian Rupee (INR) and the Philippines Peso (PHP) strengthened by 0.60 percent and 0.03 percent respectively against the USD.

On the other side of the world, the majority of currencies of the developed countries region reacted variously against the USD. While the Australian Dollar (AUD) weakened by 0.14 percent, the European Union Euro (EUR) strengthened slightly by 0.02 percent. Great Britain Pound sterling (GBP) and the Canadian Dollar (CAD) remains stagnant against the USD.

Indonesian forex experts explained that the novel coronavirus (COVID-19) outbreak has resulted in market negative sentiments. COVID-19 is expected to invade the market, causing global economic growth to slug.

The governments of the developed countries altogether announcing economic stimulus package night help increase the market’s interest toward risk assets. However, the financial market is still volatile. Should the market’s expectation on the stimulus is not fulfilled, the negative sentiment will go on.

Source: https://bit.ly/33bbSFy