Projected strengthening in 2020, IDR is approaching Rp14,000 instead due to COVID-19. (Image via Market Bisnis)

COVID-19 causes IDR to falter further to Rp13,873/USD

On Tuesday’s foreign exchange (forex) spot market opening, Indonesian Rupiah (IDR) is seen at Rp13,873 against the U.S Dollar (USD). The rate weakened by 0.01 percent compared to Monday’s rate at Rp13,872/USD. For today, IDR is moving around Rp13,760 - Rp13,900/USD.

Today, the majority of currencies in Asia – ASEAN regions strengthened against the USD. Reportedly, the S. Korean Won (KRW) strengthened 0.66 percent, Singaporean Dollar (SGD) by 0.19 percent, New Taiwan Dollar (NTD) by 0.18 percent.

Next, Malaysian Ringgit (MYR) also strengthened by 0.18 percent, Thai Baht (THB) by 0.16 percent, the Hong Kong Dollar (HKD) by 0.01 percent.

Sharing the same fate as IDR, the Japanese Yen (JPY) weakened by 0.23 percent, Philippines Peso (PHP) by 0.18 percent, Chinese Yuan (RMB) by 0.04 percent, Turkish Lira (TRY) by 0.03 percent.

On the other side of the world, the majority of currencies in the developed countries region also weakened against the USD. Both the European Union Euro (EUR) and Great Britain Pound sterling (GBP) weakened by 0.03 percent.

Meanwhile, the Australian Dollar (AUD) strengthened by 0.14 percent, and the Canadian Dollar (CAD) remains stagnant against the USD.

Indonesian forex experts explained that the negative sentiment from the novel coronavirus (COVID-19) originating from Wuhan, Hubei Province, Central China, was the cause of the weakening. More countries showed an increase in confirmed cases.

The concern pushed the market to enter safe-haven assets such as gold and U.S Government bonds. Therefore, while the risk asset fell, the gold price keeps rising.

Source: https://bit.ly/2wD7yTg