Indonesian Rupiah on top of the U.S Dollar. (Image via The Jakarta Post)

IDR goes up to Rp14,040/USD

On Tuesday's foreign exchange (forex) spot market opening, the Indonesian Rupiah (IDR) is seen at Rp14,040 against the U.S Dollar (USD). The rate strengthened by 0.50% compared to Monday's closing rate at Rp14,110/USD.

Today, IDR soared with the majority of the Asian currencies. Reportedly, the Japanese Yen (JPY) has strengthened 0.06%, Singaporean Dollar (SGD) by 0.02%, New Taiwan Dollar (TWD) by 0.02%, S. Korean Won (KRW) by 0.12%, Indian Rupee (INR) by 0.06%, Chinese Yuan (RMB) by 0.20%, Malaysian Ringgit (MYR) by 0.18%, and Thai Baht (THB) by 0.09%. Only the Philippines Peso (PHP) weakened by 0.04% against the USD.

On the other side of the world, the majority of currencies of the developed countries also showed their might against the USD. Reportedly, Great Britain Pound sterling (GBP) went up by 0.10%, the Canadian Dollar (CAD) by 0.02%, and Swiss Franc (CHF) by 0.08%. However, the Australian Dollar withered instead against the USD by 0.08%.

Indonesian forex analyst and the head of research at Monex Investindo, Ariston Tjendra, stated that the IDR's strengthening was due to the result of the clinical trial of the novel coronavirus disease (COVID-19) vaccine by the American pharma, Moderna, claiming the 94.5% efficacy. Therefore, the positive trend bolstered the market's confidence that the vaccine will be released soon & restore the world's economy and cranked IDR's rate up. For your information, Moderna was the second U.S company to report the successful development of the COVID-19 vaccine, following Pfizer cooperating with BioNTech.

Domestically, the surplus of Indonesia's trade balance also contributed to the positive trend for IDR's strengthening. The Statistics Indonesia (BPS) recorded that Indonesia's trade balance received a monthly US$3.61 billion surplus by October 2020. The number far exceeded September's figure at US$2.44 billion and October 2019's figure at US$161 million.

Therefore, for today, IDR is predicted to move at Rp14,000 - Rp14,150/USD and going strong.

Source: https://bit.ly/3f45aY3