Despite weakening, IDR will come back stronger. (Image via Market Bisnis)

IDR temporarily weakens to Rp13,699/USD

On Thursday’s foreign exchange (forex) spot market opening, Indonesian Rupiah (IDR) is seen at Rp13,699 against the U.S Dollar (USD). The rate weakened by 0.03 percent compared to Wednesday’s rate at Rp13,695/USD. For today, IDR is moving around Rp13,650 - Rp13,720/USD.

IDR is not alone as the majority of currencies in the Asia – ASEAN regions also weakened. Reportedly, S. Korean Won (KRW) 0.27 percent, Malaysian Ringgit (MYR) 0.19 percent, and both Thai Baht (THB) and Turkish Lira (TRY) 0.03 percent.

Only the Japanese Yen (JPY) strengthened by 0.13 percent against the USD.

Meanwhile, on the other side of the world, the majority of currencies in the developed countries region showed their might instead against the USD. Both the Canadian Dollar (CAD) and the European Union Euro (EUR) strengthened by 0.5 percent, and both Australian Dollar (AUD) and Great Britain Pound sterling (GBP) by 0.01 percent.

Despite weakening, Indonesian forex experts are optimistic that IDR will show its might once more, pushed by the market’s anticipation to the benchmark interest cut by China’s Central Bank, as a stimulus to rejuvenate its economic growth amid the novel coronavirus (COVID-19) viral outbreak.

The step was seen as a positive sentiment by the market and helped the strengthening of risk asset including IDR.

Not only China’s Central Bank but also the market is anticipating the new provisions from Bank Indonesia’s (BI) Board of Governors Meeting (RDG) held today. BI will most likely implement monetary loosening to dissipate the impact of COVID-19 on Indonesia’s economic growth.

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