IDR over USD. (Image via Vibiznews)

IDR strengthens to Rp14,145/USD

On Wednesday's foreign exchange (forex) spot market opening, the Indonesian Rupiah (IDR) is seen at Rp14,145 against the U.S Dollar (USD). The rate went up by 0.07% compared to Tuesday's closing rate at Rp14,155/USD.

Today, the majority of Asian currencies reportedly strengthened against the USD. The Singaporean Dollar (SGD) went up by 0.05%, New Taiwan Dollar (TWD) by 0.04%, S. Korean Won (KRW) by 0.45%, Philippines Peso (PHP) by 0.10%, Indian Rupee (INR) by 0.13%, and Chinese Yuan (RMB) by 0.17%. However, some currencies fell down instead. Malaysian Ringgit (MYR) went down by 0.04%, Thai Baht (THB) by 0.02%, and the Japanese Yen (JPY) by 0.08% against the USD.

On the other hand, the majority of the currencies of the developed countries also joined the positive trend against the USD. Reportedly, Great Britain Pound sterling (GBP) went up by 0.01%, the Canadian Dollar (CAD) by 0.02%, and Swiss Franc (CHF) by 0.04%. However, only the Australian Dollar (AUD) withered by 0.01% against the USD.

Indonesian forex analyst and head of research at Monex Investindo, Ariston Tjendra, stated that the strengthening of IDR is caused by the optimism on the development of the vaccine for the novel coronavirus disease (COVID-19). Previously, the British-flagged pharma, AstraZeneca, cooperating with Oxford University, claimed that their COVID-19's vaccine is 70% effective.

Moreover, the certainty of the U.S politics also contributed to the strengthening. The 45th President of the U.S, Donald Trump, finally agreed to the government transition to the 46th and the President-elect of the U.S., Joe Biden.

Therefore the risk asset in Asian financial market also moved to a better direction. Ariston projected that the IDR will strengthen between Rp14,100 - Rp14,180/USD for today.

Source: https://bit.ly/3q14yHN