IDR weakened this morning, yet it is projected strengthening by today. (Image via TribunNews)

IDR slump to Rp14,672/USD amid COVID-19 infection spike

On Tuesday's foreign exchange (forex) spot market opening, Indonesian Rupiah (IDR) is seen at Rp14,672 against the U.S Dollar. The rate weakened by 0.09% compared to the rate on Monday's closing at Rp14,650/USD.

This morning, the majority of currencies in the Asian region strengthened against the USD. The Japanese Yen (JPY) strengthened by 0.09%, Hong Kong Dollar (HKD) by 0.08%, Singaporean Dollar (SGD) by 0.13%, New Taiwan Dollar (TWD) by 0.01%, Indian Rupee (INR) by 0.04%, and Chinese Yuan (RMB) by 0.04%. On the other hand, the S. Korean Won (KRW) went down by 0.11%, the Philippines Peso (PHP) by 0.10%, Malaysian Ringgit (MYR) by 0.02%, and Thai Baht (THB) by 0.01%.

Meanwhile, the majority of currencies in the developed countries also showed their might against the USD. The Great Britain Pound sterling (GBP) went up by 0.07%, the Australian Dollar (AUD) by 0.06%, the Canadian Dollar (CAD) by 0.14%, and Swiss Franc (CHF) by 0.12%.

The Director of PT TRFX Garuda Berjangka, Ibrahim Assuaibi, stated that even though IDR has weakened, Rupiah will strengthen once more today, due to the sentiment that the new cases of the novel coronavirus disease (COVID-19) infection will cause USD to falter. Moreover, the spike in the COVID-19 new cases in the U.S will be another burden ahead of the 2020 U.S Presidential Election in November, as the U.S hospitals are crowded with COVID-19 patients. Hence, the sentiment will contribute to IDR's strengthening.

Domestically, Ibrahim noted that the Q3 investment realization has improved, with 1.6% growth (YoY) to Rp209 trillion for July - September 2020. He added that despite the recession, the contraction is smaller than prior estimation, at -1% to -2.5%. Therefore, Ibrahim projected that IDR will move around Rp14,635 - Rp14,660/USD.