Bad news, Indonesian Rupiah has breached Rp15,000/USD. (Image via Tempo.co)

IDR reaches Rp15,000-ish amid COVID-19

Alfonsus Adi Putra
Market & Investment
Foreign Exchange & Interest Rate
Mar 17, 2020
1747
On Tuesday’s foreign exchange (forex) spot market opening, Indonesian Rupiah (IDR) is seen at Rp15,015 against the U.S Dollar (USD). The rate went down by 0.55 percent compared to Monday’s closing rate. A nightmare came true, indeed.

Ever since the novel coronavirus (COVID-19) entered Indonesia, the IDR’s rate against USD has been weakening ever since. Indonesian forex experts stated that the majority of the factors that caused IDR to weaken is due to the negative sentiments circulating in the market about COVID-19. Therefore, the concern caused the market to shift its investment from risk assets such as IDR. Therefore, IDR is buffeted.

The global market’s concern toward the COVID-19 outbreak remains on high alert. On Monday night, Wall Street was seen decreasing by more than 12 percent.

But will it be the end of Indonesian Rupiah, then? Not at all. The forex experts noted that IDR might have hope of regaining its stance if the market will respond to the state leaders’ economic stimulus package positively.

It turned out that the news about the preparation of stimulus package from the U.S Government actually supports IDR, seen from the Nikkei and S&P Futures’ indexes on early Tuesday. Currently, the U.S Government is still negotiating with the Senate to roll out a bigger stimulus.

On the other side of the world, the government of New Zealand also released an NZ$12.5 billion stimulus package, together with the preparation of stimulus from the Australian Central Bank.

Source: https://bit.ly/3d5cCAQ

Market , Investment , Finance , Economy , Business , ASEAN , Indonesia , IDR , USD , COVID-19