IDR is going nowhere but backward while U.S economy data showed improvement. (Image via The Jakarta Post)

IDR stuck at Rp14,660/USD

On Friday's foreign exchange (forex) spot market opening, the rate of Indonesian Rupiah (IDR) was seen at Rp14,660 against the U.S Dollar (USD). The rate remains stagnant as Thursday's closing rate.

Accompanying IDR, Hong Kong Dollar (HKD) also remains stagnant toward USD. Meanwhile, the majority of Asian currencies weakened against the USD. S. Korean Won (KRW) weakened by 0.21%, the Philippines Peso (PHP) by 0.06%, Chinese Yuan (RMB) by 0.05%, Singaporean Dollar (SGD) by 0.05%, Malaysian Ringgit (MYR) by 0.03%, and Thai Baht (THB) by 0.03%. Only the Japanese Yen (JPY) strengthened against the USD by 0.1%.

From the developed countries, only the Australian Dollar (AUD) remains stagnant alongside IDR, while the majority of the developed countries' currencies withered instead. European Euro (EUR) weakened by 0.15%, Russian Ruble (RUB) by 0.13%, Great Britain Pound sterling (GBP) by 0.12%, the Canadian Dollar (CAD) by 0.11%, and Swiss Franc (CHF) by 0.02%.

Unfortunately, the analysts predicted that IDR is going to wither as well for today. The analyst and head of research at Monex Investindo, Ariston Tjendra, projected that IDR is moving around Rp14,600 - Rp14,750/USD. It was caused by the fact that USD is strengthening amidst the uncertainty of economic stimulus deal between the administration of the President of the U.S, Donald Trump, and the House of Representatives in which the Democratic Party holds the majority.

Moreover, Trump's administration has not received full support from the Senate, while being dominated by the Republicans. USD was also strengthened by the revision of its economic data which saw a decrease in the weekly U.S jobless claims. On the other hand, the data on property sales showed improvement. The sentiment gave a positive vibe for the financial market player on the prospect that the U.S economy is striving for the better.

Source: https://bit.ly/3maPBA7