Thanks to the Phase One negotiation going well, IDR is soaring. (Image via Market Bisnis)

Phase One gets clearer, IDR soars to Rp13,980/USD

On Thursday’s foreign exchange (forex) spot market opening, the Indonesian Rupiah is seen at Rp13,980 against the U.S Dollar (USD). The rate strengthened by 0.06 percent compared to Wednesday’s closing rate at Rp13,988/USD. For today, IDR is moving around Rp13.950 - Rp14.030.

IDR may beat its chest now because today, most currencies in Asia – ASEAN are seen weakened against the USD. Japanese Yen (JPY) weakened by 0.08 percent, Singaporean Dollar (SGD) by 0.03 percent, and the Hong Kong Dollar (HKD) slightly weakened by 0.02 percent.

Only Turkish Lira (TRY) and S. Korean Won (KRW) strengthened against the USD by 0.03 percent and 0.31 percent respectively. Meanwhile, Malaysian Ringgit (MYR) and Thai Baht (THB) remain stagnant against the USD.

Following IDR, the currencies of the developed countries also strengthened against the USD. Great Britain Pound sterling (GBP) strengthened by 0.04 percent, European Union Euro (EUR) by 0.03 percent, and Australian Dollar (AUD) by 0.22 percent.

Unfortunately for Canadian Dollar (CAD), it slightly weakened by 0.01 percent against the USD.

Amid the strengthening of IDR, Indonesian forex experts thanked the positive signal from the trade negotiation between the U.S and China. The global market also turned bright after the negotiation between the two warring countries on Friday last week.

The U.S signaled that the Phase One agreement might be finished and signed in January next year.

Nonetheless, keeping an eye on the waves, the global market is also approaching the news meticulously; therefore, the strengthening of IDR was not that significant despite moving in a better direction.

Not only the trade negotiation but also the Indonesian forex experts said that the gold spot market can be used as a comparison for the reaction toward the trade negotiation which also did not move that much.

Source: https://bit.ly/36NSRtu