Indonesian Rupiah's rate slumped due to COVID-19. (Image via Tempo.co)

IDR falters to Rp16,505/USD

On Thursday’s foreign exchange (forex) spot market opening, Indonesian Rupiah (IDR) is seen at Rp16,505 against the U.S Dollar (USD). The rate weakened by 0.33 percent compared to Wednesday’s closing rate at Rp16,450/USD.

Today, the majority of currencies in the Asia – ASEAN regions also weakened against the USD. Reportedly, the Japanese Yen (JPY) went down by 0.31 percent, Singaporean Dollar (SGD) by 0.03 percent, New Taiwanese Dollar (NTD) by 0.13 percent, S. Korean Won (KRW) by 0.81 percent, Indian Rupee (INR) by 0.86 percent, Chinese Yuan (RMB) by 0.28 percent, Malaysian Ringgit (MYR) by 0.51 percent, and Thai Baht (THB) by 0.25 percent.

Meanwhile, the Hong Kong Dollar (HKD) and the Philippines Peso (PHP) remain stagnant.

On the other side of the world, the majority of currencies in the developed countries strengthened instead against the USD. Reportedly, Great Britain Pound sterling (GBP) strengthened by 0.71 percent, the Australian Dollar (AUD) by 0.20 percent, and the Canadian Dollar (CAD) by 0.05 percent.

Only Swiss Franc (CRF) weakened against the USD by 0.16 percent.

Indonesian forex experts explained that the weakening of IDR is caused by the Purchase Manager Index (PMI) which went to its lowest level in history since April 2011. IHS Markit reported Indonesian PMI by March 2020 went down to 45.3 from previously 51.9.

The low PMI is caused by the novel coronavirus (COVID-19) outbreak. Indonesian people were advised to stay home, leading to a slump in the domestic economy. Not only Indonesia, the manufacturing data from Asia and Europe also showed a slump, showing a contraction below 50, except China with 52.

Source: https://bit.ly/2R3zmrq