IDR strengthens against the USD. (Image via Market Bisnis)

IDR strengthens to Rp13,992/USD

On Friday's foreign exchange (forex) spot market opening, the Indonesian Rupiah (IDR) is seen at Rp13,992 against the U.S Dollar (USD). The rate went up by 0.02 percent, compared to Thursday's closing rate at Rp14,000/USD.

This morning, the majority of currencies of the Asian countries are seen weakened against the USD unfortunately. Reportedly, the Japanese Yen (JPY) weakened by 0.05 percent, the Singaporean Dollar (SGD) by 0.06 percent, S. Korean Won (KRW) by 0.02 percent, the Philippines Peso (PHP) by 0.04 percent, the Chinese Yuan (RMB) bu 0.08 percent, the Malaysian Ringgit (MYR) by 0.15 percent, and Thai Baht (THB) by 0.06 percent. Only the New Taiwan Dollar (TWD) and the Indian Rupee (INR) strengthened by 0.11 and 0.04 percent respectively.

On the other side of the world, the currencies of the developed countries showed different reactions against the USD. Reportedly, Great Britain Pound sterling (GBP) and the Australian Dollar (AUD) strengthened by 0.12 percent, while the Canadian Dollar (CAD) and Swiss Franc (CHF) weakened altogether by 0.18 and 0.01 percent respectively.

Indonesian forex analyst and the Head of Research at Monex Investindo, Ariston Tjendra, stated that this morning the 10-year tenor rate of the yield rate of the U.S Government's obligation was seen strengthened since yesterday. The positive trend reflects the market's optimism on the U.S' economic and inflation rate revival.

On the other hand, Rupiah's strengthening will be limited due to the expectation of a huge U.S stimulus that arouses the market's interest in the risky asset. Moreover, the Bank of Indonesia (BI) also stated its optimism that the foreign fund to Indonesia will be increasing as the prospect of economic revival shows promise. For today, Tjendra predicted that IDR will move around Rp13,980 - Rp14,050/USD.

Source: https://bit.ly/3p5Pzv6