The Fed once more contributed to the strengthening of IDR. (Image via Market Bisnis)

IDR hoisted to Rp13,636/USD after the Fed's yield

On Friday’s foreign exchange (forex) spot market opening, Indonesian Rupiah (IDR) is seen at Rp13,636 against the U.S Dollar (USD). The rate strengthened by 0.02 percent compared to Thursday’s closing rate at Rp13,639/USD. For today, IDR is moving around Rp13,600 - Rp13,670/USD.

Today, the majority of currencies in Asia – ASEAN regions strengthened against the USD. Reportedly, S. Korean Won (KRW) strengthened by 0.08 percent, New Taiwan Dollar (TWD) by 0.06 percent, and both Thai Baht (THB) and Singaporean Dollar (SGD) by 0.02 and 0.01 percent respectively against the USD.

On the other hand, some currencies weakened instead. Malaysian Ringgit (MYR) weakened by 0.04 percent, the Hong Kong Dollar (HKD) by 0.01 percent, and Japanese Yen (JPY) by 0.04 percent against the USD.

Then, the currencies in the developed countries region weakened against the USD. Great Britain Pound sterling (GBP) and European Union Euro (EUR) weakened by 0.08 and 0.02 percent respectively. Meanwhile, both the Australian Dollar (AUD) and the Canadian Dollar (CAD) weakened by 0.02 percent against the USD.

Indonesian forex experts explained that the positive sentiment that the coronavirus had calmed down made the IDR strive further. However, the market is still anticipating the outbreak. On the other hand, the U.S obligation yield for a 10-year tenor remains low at 1.71 percent, the lowest since December 2019. It also contributed to the strengthening of IDR.

Source: https://bit.ly/30NI2WB