Thanks to the Fed, IDR is rising to Rp16,492/USD. (Image via Tempo.co)

IDR strengthens to Rp16,492/USD

On Tuesday’s foreign exchange (forex) spot market opening, the Indonesian Rupiah (IDR) is seen at Rp16,492 against the U.S Dollar (USD). The rate strengthened by 0.50 percent compared to Monday’s closing rate at Rp16,575/USD. Today, IDR is moving around Rp16,000 - Rp16,575/USD.

Not only IDR but also the majority of currencies in the Asia – ASEAN regions strengthened against the USD. Reportedly, the Japanese Yen (JPY) strengthened by 0.76 percent, S. Korean Won (KRW) by 0.73 percent, the Philippines Peso (PHP) by 0.48 percent, Malaysian Ringgit (MYR) by 0.41 percent, Turkish Lira (TRY) by 0.37 percent, Singaporean Dollar (SGD) by 0.30 percent, and Chinese Yuan (RMB) by 0.07 percent.

Only Indian Rupee (INR) weakened by 1.46 percent against the USD.

On the other side of the world, the majority of the currencies in the developed countries region also strengthened against the USD. Both the Australian Dollar (AUD) and the Canadian Dollar (CAD) strengthened by 1.50 percent and 0.36 percent respectively. Meanwhile, Great Britain Pound sterling (GBP) and the European Union Euro (EUR) also strengthened by 0.69 percent 0.76 percent respectively.

Indonesian forex experts explained that the strengthening of Indonesian Rupiah is caused by the announcement of a credit program for businesspeople by the central bank of the U.S, The Federal Reserve (The Fed). Moreover, the market is still anticipating the US$2 trillion stimuli today. Should the stimulus be proceeded, IDR’s rate might strengthen further.

Therefore, the Asian stock indexes such as Nikkei and Kospi were seen strengthening today, following the Australian stock index and Futures S&P500 index.

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