U.S and Iran wanted to go at it. However, the impact also hit IDR. (Image via Market Bisnis)

Prelude to WWIII, IDR falls down to Rp13,933/USD

Alfonsus Adi Putra
Market & Investment
Foreign Exchange & Interest Rate
Jan 06, 2020
2690
On Monday’s foreign exchange (forex) spot market opening, the Indonesian Rupiah (IDR) is seen at Rp13,933 against the U.S Dollar (USD). The rate weakened by 0.02 percent compared to Friday’s closing rate at Rp13,930/USD. For the day, the IDR is moving around Rp13.900 - Rp14.000/USD.

Today, the majority of currencies in Asia – ASEAN regions strengthened against the USD. Reportedly, Thai Baht (THB) strengthened by 0.08 percent, Japanese Yen (JPY) by 0.06 percent, Turkish Lira (TRY) by 0.03 percent, and Malaysian Ringgit (MYR) slightly by 0.02 percent against the USD.

Sharing the same fate as IDR, S. Korean Won (KRW), Hong Kong Dollar (HKD), and Singaporean Dollar (SGD) weakened altogether by 0.03 percent.

The majority of currencies in the developed country regions also strengthened against the USD. The Canadian Dollar (CAD) strengthened by 0.14 percent, European Union Euro (EUR) by 0.04 percent, and the Australian Dollar (AUD) slightly by 0.01 percent against the USD.

Only Great Britain Pound sterling (GBP) weakened by 0.03 percent against the USD.

Indonesian forex experts stated that the weakening of IDR is caused by the negative sentiment between the United States (U.S) and Iran. The market is afraid of the speculation that a war will rage in the Middle East between the two countries. Previously, the death of Iranian General, Qaseem Soelamani, due to the U.S airstrike worsened the tension between the U.S and Iran.

Last weekend, the President of the U.S, Donald Trump, stated that Washington will strike back if Tehran retaliates.

With such a condition, the IDR’s rate might worsen to exceed Rp14,000/USD.

Source: https://bit.ly/35xkGFz

Market , Investment , Forex , Politics , Economy , Trade , Conflict , ASEAN , Indonesia , IDR , U.S , USD , Iran , War