IDR and USD. (Image via Market Bisnis)

IDR stays at Rp14,114/USD

On Wednesday's foreign exchange (forex) spot market opening, the Indonesian Rupiah (IDR) is seen at Rp14,114 against the U.S Dollar (USD), The rate went up by 0.11 percent compared to Tuesday's closing rate at Rp14,130/USD.

Not only Rupiah, today, but the majority of the currencies of Asian countries also strengthened as well against the USD. S. Korean Won (KRW) went up by 0.28 percent, Malaysian Ringgit (MYR) by 0.23 percent, the Japanese Yen (JPY) by 0.23 percent, Thai Baht (THB) by 0.1 percent, Singaporean Dollar (SGD) by 0.1 percent, Chinese Yuan (RMB) by 0.08 percent, and the Hong Kong Dollar (HKD) by 0.02 percent. Only the Philippines Peso (PHP) weakened by 0.04 percent against the USD.

On the other side of the world, the majority of currencies of the developed countries also in the green zone this morning, strengthening against the USD. European Union Euro (EUR) strengthened by 0.33 percent, the Australian Dollar (AUD) by 0.33 percent, Russian Ruble (RUB) by 0.3 percent, Great Britain Pound sterling (GBP) by 0.27 percent, Swiss Franc (CHF) by 0.19 percent, and the Canadian Dollar (CAD) by 0.12 percent.

Indonesian forex analyst and Head of Research at Monex Investindo, Ariston Tjendra, stated that the IDR is likely to strengthen for the rest of the day. He projected IDR to move around Rp14,080 - Rp14,200/USD.

Ariston stated that the strengthening of IDR is supported by the positive expectation of the market players on the U.S fiscal stimulus from President Donald Trump. The stimulus is expected to help the U.S's crippling economy due to the novel coronavirus disease (COVID-19) pandemic. Moreover, the IDR was also helped by the optimistic prospect from the Brexit deal with the EU. Therefore, the USD index weakened.