Thanks to Phase One agreement between the U.S and China, IDR rose to reach Rp13,670/USD. (Image via Market Bisnis)

Official! Phase One taken, IDR rises to Rp13,670/USD

Alfonsus Adi Putra
Market & Investment
Foreign Exchange & Interest Rate
Jan 16, 2020
1875
On Thursday’s foreign exchange (forex) spot market opening, Indonesian Rupiah (IDR) is seen at Rp13,670 against the U.S Dollar (USD). The rate strengthened by 0.18 percent compared to Wednesday’s closing rate at Rp13,695/USD. For today, IDR is moving around Rp13,630 - Rp13,730/USD.

Today, the majority of currencies in the Asia – ASEAN regions shared the same joy. Reportedly, the Hong Kong Dollar (HKD) strengthened slightly by 0.01 percent, Singaporean Dollar (SGD) by 0.04 percent, Thai Baht (THB) by 0.06 percent, and Malaysian Ringgit (MYR) with a huge leap by 0.23 percent against the USD.

However, these currencies weakened instead: S. Korean Won (KRW) weakened by 0.16 percent, and both Turkish Lira (TRY) and Japanese Yen (JPY) weakened by 0.04 percent against the USD.

On the other hand, the majority of currencies in the developed country regions also strengthened against the USD. Australian Dollar (AUD) strengthened by 0.10 percent and the Canadian Dollar by 0.02 percent. Meanwhile, European Union Euro (EUR) strengthened by 0.07 percent, and Great Britain Pound sterling (GBP) slightly by 0.01 percent against the USD.

The major strengthening of currencies against the USD was explained as the result of the trade agreement between the United States (U.S) and China, done yesterday. The signature of the “Phase One” agreement is said to bring positive sentiment to the risk asset.

Nonetheless, the market should be careful regarding the U.S statement that it will not erase all the Chinese import tariffs until the “Phase Two” agreement after the 2020 U.S Presidential Election has ended. The delay in tariff deletion might disrupt the next negotiation.

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

Politics , Economy , Finance , Trade , Market , Investment , Forex , ASEAN , Indonesia , IDR , U.S , USD , China , Phase-One , Trade-war