Strengthening for today, Indonesian forex experts warned that the good might not last that long. (Image via Market Bisnis)

Global sentiments draw IDR nearer to Rp14,000/USD

On Monday’s foreign exchange (forex) spot market opening, the Indonesian Rupiah (IDR) is seen at Rp14,005 against the U.S Dollar (USD). The rate strengthened by 0.23 percent compared to Friday’s closing rate at Rp14,038/USD. For today, IDR is moving around Rp14.000- Rp14.080/USD.

However, the majority of currencies in Asia – ASEAN regions weakened against the USD today. Turkish Lira (TRY) weakened by 0.10 percent, Malaysian Ringgit (MYR) by 0.06 percent, and Singaporean Dollar (SGD) slightly weakened by 0.01 percent against the USD.

Only S. Korean Won (KRW) and Thai Baht (THB) joined IDR, having strengthened by 0.05 percent and 0.01 percent respectively. Meanwhile, the Japanese Yen (JPY) and the Hong Kong Dollar (HKD) remain stagnant against the USD.

In the developed country regions, the currencies showed a balanced reaction against the USD. Great Britain Pound sterling (GBP) and Australian Dollar (AUD) strengthened against the USD by 0.08 percent and 0.02 percent respectively.

Unfortunately, the Canadian Dollar (CAD) dan European Union Euro (EUR) weakened against the USD by 0.02 percent and 0.04 percent respectively.

Despite strengthening, Indonesian forex experts warned that IDR might weaken on the following day. There are two decisive factors: uncertainty in the trade negotiation between the U.S and China and nonfarm payroll data released by the U.S.

The global market players are anticipating 15 December, the date when the U.S is going to impose a new tariff on Chinese goods. Bad news came from the release of nonfarm payroll data and consumer sentiment index by the U.S on Friday night. Both of the data showed its might, supporting the USD.

Therefore, IDR’s fate relies on more good news from the trade negotiation between the U.S and China.

Source: https://bit.ly/2YvM0lF