Indonesian Rupiah is strengthening against the USD today. (Image via CNN Indonesia)

IDR rises to Rp14,670/USD amid China's economic recovery

On Monday's foreign exchange (forex) market opening, the Indonesian Rupiah (IDR) is seen at Rp14,670 against the U.S Dollar (USD). The rate strengthened by 0.27 points or 0.19% compared to the rate on Friday's closing at Rp14,697/USD.

Today, the majority of the exchange rate of Asian currencies strengthened against the USD. S. Korean Won (KRW) strengthened by 0.45%, the Philippines Peso (PHP) by 0,13%, Malaysian Ringgit (MYR) by 0.13%, the Singaporean Dollar (SGD) by 0.07%. However, some Asian currencies showed mixed movements against the USD. Hong Kong Dollar (HKD) remains stagnant, while the Japanese Yen (JPY) weakened by 0.02%, Chinese Yuan (RMB) by 0.01%, and Thai Baht (THB) by 0.01%.

On the other hand, the exchange rate of the developed countries' currencies also showed their might against the USD. The Australian Dollar (AUD) strengthened by 0.26%, the Great Britain Pound sterling (GBP) by 0.12%, the Canadian Dollar (CAD) by 0.1%, Russian Ruble (RUB) by 0.03%. On the contrary, the Swiss Franc (CHF) weakened by 0.05%, and the European Union Euro (EUR) by 0.02%.

Indonesian forex analysts projected that IDR will move around Rp14,600 - Rp14,750/USD today. The strengthening of IDR is graced by the development of the U.S economic stimulus plan. Speaking to CNN Indonesia, analyst and head of research at Monex Investindo, Ariston Tjendra, stated that the market showed positive signed after the optimism from the Speaker of the U.S House of Representatives, Nancy Pelosi, that the U.S fiscal stimulus could be launched before the U.S Presidential Election in the upcoming November.

Positive sentiment also came from China's Q3 economic growth data, showing improvement from the Q2 of 2020. China's economy went to the 4.9% level in the Q3 of 2020. During the novel coronavirus disease (COVID-19) pandemic originating in Wuhan in late 2019, China's economy was once blown away by the pandemic. Meanwhile, domestically, the market is still anticipating the development of the omnibus law on job creation in Indonesia.

Source: https://bit.ly/35ejvwe