Indonesian Rupiah (IDR) is strengthening anticipating the signal from BI considering cutting the benchmark interest rate. (Image via Kompas.com)
Positive vibe from BI, IDR strengthened to Rp13,992/USD
Opening on Thursday morning, the Indonesian Rupiah (IDR) showed its might again against the U.S Dollar (USD) at Rp13,992/USD. The rate strengthened by 0.29% compared to Wednesday’s rate at Rp14,032/USD. For today, Rupiah is moving around Rp13,930 - Rp14,050/USD.Today the majority of currencies in Asia-Pacific regions strengthened against the USD. S. Korean Won (KRW) strengthened by 0.18%, Chinese Yuan (CNY) by 0.16%, Philippines Peso (PHP) 0.13%, Thai Baht (THB) 0.09%, Japanese Yen (JPY) 0.07%, Singaporean Dollar (SGD) 0.05%, Indian Rupee (INR) 0.04%, Hong Kong Dollar (HGD) 0.03%, and Malaysian Ringgit (MYR) 0.02%.
For developed countries, the rates vary. Turkish Lira (TRY) weakened by 0.17% against the USD. Great Britain Pound sterling (GBP) strengthened by 0.03%, European Union Euro (EUR) by 0.06%, while the Australian Dollar (AUD) weakened by 0.05%.
Forex (Foreign Exchange) experts said that the strengthening of IDR is caused by market speculation that Bank Indonesia (BI) is going to cut the benchmark interest rate in its Board of Governors’ Meeting held this week. The plan aims to bolster Indonesia’s economic growth.
Not only the plan but also forex experts expected that the U.S Federal Reserve is also going to do the same as BI, cutting their benchmark interest rate. Together with Indonesia’s stable inflation, IDR is soaring high for the Thursday forex market.
Also, the tension between the U.S and China has been alleviating since both countries agreed to sign the Phase 1 agreement and the Brexit deal contributed to the IDR’s strengthening.
Source: https://bit.ly/33WhmmO
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