On Wednesday’s foreign exchange (forex) spot market opening, Indonesian Rupiah (IDR) is seen at Rp16,325 against the U.S Dollar (USD). The rate weakened by 0.09 percent compared to Tuesday’s closing rate at Rp16,310/USD. For today, IDR is moving around Rp16,250 - Rp16,400/USD.

Altogether, the majority of currencies in the Asia – ASEAN regions also weakened against the USD. Reportedly, the Japanese Yen (JPY) weakened by 0.25 percent, the Hong Kong Dollar (HKD) by 0.03 percent, Singaporean Dollar (SGD) by 0.13 percent, New Taiwanese Dollar (NTD) by 0.03 percent, S. Korean Won (KRW) by 0.10 percent, the Philippines Peso (PHP) by 0.04 percent, Indian Rupee (INR) by 0.05 percent, Chinese Yuan (RMB) by 0.04 percent, and Thai Baht (THB) by 0.35 percent.

Only the Malaysian Ringgit (MYR) strengthened by 0.40 percent against the USD.

On the other side of the world, the majority of currencies in the developed countries also weakened against the USD. Great Britain Pound sterling (GBP) weakened by 0.43 percent, the Canadian Dollar (CAD) by 0.36 percent, Australian Dollar (AUD) by 0.24 percent, and Swiss Franc (CHF) by 0.16 percent against the USD.

Indonesian forex experts explained that the weakening of IDR is caused by the Indonesian Government’s action to tackle the novel coronavirus pandemic on the land, such as declaring a large-scale social distancing (PSBB) and a state of a public health emergency. Thus, the action lifts COVID-19 status as a disease and health risk that stirs the people.

Fortunately, the next sentiment might strengthen IDR. The President of Indonesia, Joko Widodo (Jokowi) had decided to allocate an Rp405.1 trillion budget in the 2020 State Budget to tackle the pandemic, regulated in the recently-signed Government Regulation in Lieu of Law (Perppu) on state finance policy and financial system stability.