Pushed by the Phase One agreement, IDR is having a good time. (Image via Market Bisnis)

IDR strengthens to Rp13,640/USD amid the U.S and China's harmony

On Monday’s foreign exchange (forex) spot market opening, Indonesian Rupiah (IDR) is seen at Rp13,640 against the U.S Dollar (USD). The rate strengthened by 0.04 percent compared to the weekend’s rate at Rp13,645/USD. For today, IDR is moving around Rp13.600 - Rp13.700/USD.

Nonetheless, the same joy could not be shared with other currencies. Today, the majority of currencies throughout Asia – ASEAN regions weakened against the USD. Reportedly, the Turkish Lira (TRY) weakened by 0.13 percent, S. Korean Won (KRW) by 0.10 percent, and Malaysian Ringgit (MYR) by 0.07 percent against the USD.

Meanwhile, both Japanese Yen (JPY) and Thai Baht (THB) weakened by 0.05 percent, and the Hong Kong Dollar (HKD) by 0.03 percent against the USD. Only Singaporean Dollar (SGD) strengthened against the USD slightly by 0.01 percent.

The currencies in developed country regions reacted variously against the USD. Great Britain Pound sterling (GBP) and Canadian Dollar (CAD) weakened by 0.05 and 0.01 percent respectively against the USD, while European Union Euro (EUR) and Australian Dollar strengthened by 0.03 percent and 0.09 respectively.

Indonesian forex experts said that IDR’s strengthening was still in line with the harmony between the United States (U.S) and China after the signing of the “Phase One” trade agreement. Therefore, the harmony is expected to support IDR for the whole week.

Regarding the “Phase Two” agreement, the time has not been determined yet. Both countries would like to address the problem and implement the Phase One agreement first.

Domestically, the market is expecting new policies and statements from Bank Indonesia (BI) post Board of Governor Meeting on the upcoming Thursday. Judging from the stable relations between the U.S and China, there is a chance for BI to maintain its benchmark interest rate at 5 percent.

Source: https://bit.ly/30GDrpc