Thank you, Feds! Thanks to the benchmark interest rate cut, IDR is approaching under Rp14,000/USD. (Image via Kompas.com)

IDR strengthens to Rp14,010/USD after the benchmark interest rate cut by the Feds

Alfonsus Adi Putra
Market & Investment
Foreign Exchange & Interest Rate
Oct 31, 2019
1191
On Thursday morning, the spot foreign exchange (forex) market showed that Indonesian Rupiah (IDR) is strengthening at Rp14,010 against the U.S Dollar (USD). The figure grew by 0.15% compared to the rate on Wednesday’s closing, Rp14.030/USD. IDR is moving around Rp13.970 - Rp14.050/USD for today.

The majority of currencies throughout the Asian and ASEAN regions also strengthened against the USD. S. Korean Won (KRW) strengthened by 0.51 %, Thai Baht 0.12 %, Philippines Peso (PHP) 0.12 %, Singaporean Dollar (SGD) 0.09 %, Malaysian Ringgit (MYR) 0.07 %, and Hong Kong Dollar (HGD) and Japanese Yen (JPY) both strengthened by 0.05 %.

The majority of currencies of developed countries also strengthened against the USD. Great Britain Pound sterling (GBP) and European Union Euro (EUR) both strengthened by 0.10%, and Australian Dollar (AUD) by 0.19 %. Only Canadian Dollar that weakened (CAD) by 0,06 % against the USD.

The forex experts explained that the IDR’s strengthening was caused by the projection by the Federal Reserve (The Feds) that it will not raise the benchmark interest rate shortly.

Earlier today, the Feds cut the benchmark interest rate by 25 basis points (BP) instead. It was the third cut and could be the last cut by the Feds for 2019. Fortunately for IDR, the cut contributed to its might.

Source: https://bit.ly/2NpNOaw