U.S Dollar prevails against the Indonesian Rupiah. (Image via Portonews.com)

IDR withers to Rp14,675/USD

On Monday's foreign exchange (forex) spot market opening, the Indonesian Rupiah (IDR) is seen weakening at Rp14,675 against the U.S Dollar (USD), The rate weakened by 0.34% compared to the closing rate on Friday at Rp14,625/USD.

However, IDR is not alone. This morning, the majority of currencies in the Asian region also weakened against the USD. Both the Japanese Yen (JPY) & the Hong Kong Dollar (HKD) weakened by 0.03%, Singaporean Dollar (SGD) & New Taiwan Dollar (TWD) by 0.01%, Indian Rupee (INR) by 0.32%, and the Philippines Peso (PHP) 0.16%. On the other hand, Chinese Yuan (RMB) strengthened by 0.05%, S. Korean Won (KRW) by 0.04%, Malaysian Ringgit (MYR) by 0.04%, and Thai Baht (THB) by 0.02%.

On the other side of the world, the majority of currencies of developed countries also showed negative movement. Reportedly, Great Britain Pound sterling (GBP) weakened by 0.12%, Australian Dollar (AUD) by 0.06%, and the Canadian Dollar (CAD) by 0.07%.

Indonesian forex analyst and head of research at Monex Investindo, Ariston Tjendra, predicted that IDR will receive another blow as negative sentiments are lurking at the corner. One of which is the surge of novel coronavirus disease (COVID-19) infection cases around the world. The sentiment caused some countries to reactivate lockdown in public space. Another negative sentiment is the postponement in fiscal stimulus discussion happening in the U.S, causing the market players to seek a safer investment.

Domestically, the market player is still anticipating the rejection movement of the omnibus law on law creation. Ariston projected that the IDR will move around Rp14,600 - Rp14,750/USD.

Source: https://bit.ly/3218wG0