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Thanks to the reconciliation, Indonesian Rupiah (IDR) is soaring high. (Image via: Forex Starmoon)
Reconciliation at Work! IDR Strengthens to Rp13,000s
United we stand, divided we fall. That is what people say to ignite the spirit of unity. At the opening of the foreign exchange market this Monday (15/7), Indonesian Rupiah (IDR) was seen strengthening against the U.S. Dollar (USD) at Rp13,993 per USD.Until 08.30 a.m., the forex rate of IDR was getting stronger to Rp13,973 per USD. It was predicted that the IDR is going to be sold at Rp13.900 – Rp14.080 today.
The head of research at Monex Investindo Futures, Ariston Tjendra, pointed out that there are 2 sentiments that contributed to the strengthening: the reconciliation of President of Indonesia, Joko Widodo – generally known as Jokowi - and his rival, Prabowo Subianto. Both politicians met last Saturday (13/7), signaling unity and peace after the long-fought 2019 Presidential Election.
The plan of Federal Reserve (The Feds), the central bank of the U.S., to cut the benchmark interest rate also contributed to the strengthening of IDR. However, Tjendra asserted that the main contributor to the increase was the reconciliation of the two most polarizing politicians. It was evident, though, that the plan of The Feds caused USD to weaken against some currencies.
Unfortunately for the majority of Asian currencies, they are withering against USD. Singaporean Dollar (SGD) went down by 0.07%, Thai Baht (THB) 0.03&, Chinese Yuan (CNY) 0.15%, Philippines Peso (PHP) 0.02%, and Hong Kong Dollar (HKD) 0.05%. Some Asian currencies were following IDR’s stead such as Malaysian Ringgit (MYR) rose by 0.11%, Japanese Yen (JPY) 0.05%, and South Korean Won (KRW) 0.02%.
Some currencies of the developed countries also faltered against USD such as Great Britain Pound sterling (GBP) fell by 0.05%, Australian Dollar (AUD) 0.006%, and Swiss Franc (CHF) 0.03%. Meanwhile, European Union Euro (EUR) remained stagnant.
Source: https://www.cnnindonesia.com/ekonomi/20190715081146-78-412087/rekonsiliasi-jokowi-prabowo-bawa-dolar-as-ke-bawah-rp14-ribu
