IDR over USD. (Image via The Jakarta Post)

IDR strengthens to Rp14,120/USD

On Wednesday's foreign exchange (forex) spot market opening, the Indonesian Rupiah (IDR) is seen at Rp14,120 against the U.S Dollar (USD). The rate strengthened by 0.05% compared to Tuesday's closing rate at Rp14,130/USD.

This morning, the majority of currencies of Asian countries showed their might altogether against the USD. Reportedly, New Taiwan Dollar (TWD) went up by 0.09%, Chinese Yuan (RMB) by 0.08%, Thai Baht (THB) by 0.07%, S. Korean Won (KRW) by 0.01%, Philippines Peso (PHP) by 0.11%, Indian Rupee (INR) by 0.22%, and Malaysian Ringgit (MYR) by 0.01%. Only the Japanese Yen (JPY) weakened against the USD by 0.07%.

On the other side of the world, the currencies of the developed countries reacted variously against the USD. Reportedly, Great Britain Pound sterling (GBP) weakened by 0.17% and the Australian Dollar (AUD) by 0.20%. Meanwhile, the Canadian Dollar (CAD) strengthened by 0.03% and Swiss Franc (CHF) by 0.29%.

Indonesian analyst and head of research at Monex Investindo, Ariston Tjendra, stated that there were two positive sentiments contributing to IDR's strengthening. First, the United States (U.S) fiscal stimulus and the statement of the Federal Reserve's Governor, Jerome Powell, who wanted to maintain monetary easing to help restore the U.S economy. Hence, it caused other currencies to strengthen instead.

Moreover, Ariston pointed out that the USD index keeps on being at the newest low in 2020 at 91.19. The sentiment may also contribute to IDR's strengthening for the day. However, he also warned that the novel coronavirus disease (COVID-19) case in Indonesia might threat IDR's rate. For today, IDR is projected to move around Rp14,050 - Rp14,200/USD.

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