Amid the trade war uncertainty between the U.S and China, IDR is showing its might. But, the experts warned that it might be temporary, depending on the Phase One negotiation. (Image via Market Bisnis)
IDR reaching below Rp14,000 amid Phase One uncertainty
On Tuesday’s foreign exchange (forex) spot market opening, the Indonesian Rupiah (IDR) is seen strengthening at Rp13,995 against the U.S Dollar (USD). The rate strengthened by 0.11 percent compared to Monday’s closing rate at Rp14,010/USD. For today, IDR is moving around Rp14,000 - Rp14,080/USD.Today, most currencies in Asia – ASEAN regions are seen weakening against the USD. S. Korean Won (KRW) weakened by 0.12 percent, Japanese Yen (JPY) by 0.07 percent, Singaporean Dollar (SGD) by 0.04 percent, Malaysian Ringgit (MYR) by 0.03 percent, and Thai Baht (THB) weakened slightly by 0.01 percent.
Only Turkish Lira (TRY) and New Taiwanese Dollar (TWD) strengthened against the USD by 0.02 percent. Meanwhile, the Hong Kong Dollar (HKD) remains stagnant against the USD.
For the currencies in the developed country regions, the reactions varied. Canadian Dollar (CAD) weakened slightly by 0.01 percent, while the European Union Euro (EUR) and Great Britain Pound sterling (GBP) remain stagnant against the USD. Only Australian Dollar (AUD) strengthened by 0.06 percent against the USD.
While the Indonesian people are celebrating, Indonesian forex experts warned that IDR is still prone to weakening since the global market is still anticipating the uncertain Phase One negotiation between the U.S and China.
With all the blows traded between the two warring countries, the market is still hoping that the negotiation will be wrapped up soon.
If the U.S decides to impose a new tariff on the Chinese goods on the upcoming 15 December, there is a huge possibility that the Phase One negotiation will face another setback, a negative signal for IDR as well.
Source: https://bit.ly/342kzkl
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