BI and The Fed contributed to the strengthening of IDR amid the COVID-19 outbreak. (Image via Market Bisnis)

IDR rises to Rp14,215/USD amid COVID-19 outbreak in Indonesia

Alfonsus Adi Putra
Market & Investment
Foreign Exchange & Interest Rate
Mar 03, 2020
1960
On Tuesday’s foreign exchange (forex) spot market opening, Indonesian Rupiah (IDR) is seen at Rp14,215 against the U.S Dollar (USD). The rate strengthened by 0.35 percent compared to Monday’s rate at Rp14,265/USD.

Alongside IDR, the majority of currencies in Asia – ASEAN regions also strengthened against the USD. Reportedly, New Taiwanese Dollar (NTD) strengthened by 0.56 percent, Chinese Yuan (RMB) by 0.44 percent, S. Korean Won (KRW) by 0.35 percent, Philippines Peso (PHP) by 0.18 percent, Thai Baht (THB) by 0.14 percent, the Japanese Yen (JPY) by 0.07 percent, and Malaysian Ringgit (MYR) by 0.06 percent.

However, some currencies weakened instead against the USD. Turkish Lira (TRY) weakened by 0.05 percent, and the Hong Kong Dollar (HKD) 0.02 percent.

On the other side of the world, the majority of currencies in the developed countries region weakened instead against the USD. The Canadian Dollar (CAD) and the Australian Dollar (AUD) weakened by 0.05 percent and 0.01 percent, and the European Union Euro (EUR) by 0.02 percent.

Only Great Britain Pound sterling (GBP) strengthened by 0.13 percent against the USD.

Indonesian forex experts explained that the IDR’s strengthening was sponsored by the positive sentiments in the market on global stimulus expectations such as the benchmark interest rate cut by the U.S central bank, the Federal Reserve (The Fed). Moreover, this morning, the Japanese Central Bank also reported a 500-billion-yen bond purchase and green Asian Stock Index.

Domestically, the stimulus program announced by Indonesia’s central bank, Bank Indonesia (BI), on Monday also supported IDR’s growth.

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

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