Despite the strengthening, the future does not look good for IDR. (Image via Market Bisnis)

IDR starts the week by soaring at Rp13,685/USD

On Monday’s foreign exchange (forex) spot market opening, Indonesian Rupiah (IDR) is seen at Rp13,685 against the U.S Dollar (USD). The rate strengthened by 0.06 percent compared to Friday’s rate at Rp13,693/USD. For today, IDR is moving around Rp13,670 - Rp13,720/USD.

Today, the currencies in the Asia – ASEAN regions showed different reactions against the USD. Reportedly, Thai Baht (THB) strengthened by 0.16 percent, Singaporean Dollar (SGD) by 0.10 percent, and S. Korean Won (KRW) by 0.08 percent.

However, some currencies weakened instead. Turkish Lira (TRY) weakened by 0.03 percent, the Hong Kong Dollar (HKD) slightly by 0.01 percent, Malaysian Ringgit (MYR) by 0.03 percent and the Japanese Yen (JPY) by 0.02 percent against the USD.

On the other side of the world, the majority of currencies in the developed countries region strengthened against the USD. Both the Australian Dollar (AUD) and Canadian Dollar (CAD) strengthened by 0.06 percent and 0.02 percent respectively, while the European Union Euro (EUR) by 0.05 percent. Only the Great Britain Pound sterling (GBP) weakened against the USD by 0.03 percent.

While strengthening, Indonesian forex experts warned that IDR might weaken once more since the market doubts the data from the Chinese government regarding the novel coronavirus outbreak. On Sunday, China reported an increase in death toll and confirmed cases.

Moreover, Heathrow Airport in England also seized 8 passenger planes on Friday due to the suspicion of the COVID-19, an official name for the virus given by the World Health Organization (WHO).

The negative sentiments might press the risk assets, including IDR.

Fortunately, the U.S 10-year obligation’s yield which went down to 1.58 percent might break IDR’s fall a bit and push it forward against the USD instead.

Source: https://bit.ly/39IDKmK