Once again, Indonesian Rupiah (IDR) is getting closer to Rp13,000 per the U.S. Dollar (USD). (Image via: Investasi Kontan/Fransiskus Simbolon)

Thanks, Jerome Powell! Indonesian Rupiah Strengthens to Rp14,102

Go, Garuda! On Thursday (11/7) morning, Indonesian Rupiah (IDR) came back to its course by strengthening to Rp14,102 per the U.S. Dollar (USD). The rate increased by 0.01% compared to the rate on Wednesday, Rp14,132. For the day, IDR is being traded at Rp14,090 – Rp14,190/USD.

However, IDR must not let its guard down. IDR’s exchange rate is still up in the air due to the tension between the U.S. and Iran. As one of the most frequent importers of crude oil from the Middle East, the rise in crude oil prices could affect Indonesian’s net export growth.

The good news came thanks to none other than the Governor of the Federal Reserve, Jerome Powell, whose statement in front of the U.S. Congress on Wednesday (10/7) made USD’s rate freefall. Powell stated that the Feds would cut the benchmark interest rate at the upcoming meeting of the Federal Open Market Committee (FOMC) in late July.

It is written in The Feds’ treatise that the members of FOMC stated that the action of cutting the benchmark interest rate would minimize the impacts of economic frictions in the near future.

This good news was also shared with other Asian currencies since the majority of Asian currencies were strengthening in front of USD. Singaporean Dollar (SGD) strengthened by 0.06%, Thai Baht (THB) 0.07%, Malaysian Ringgit (MYR) 0.21%, Japanese Yen (JPY) 0.3%, Philippines Peso (PHP) 0.34%, and South Korean Won (KRW) 0.34%.

Developed countries also showed their might. Great Britain pound sterling (GBP) strengthened by 0.03%, and European Union Euro (EUR) 0.07%.

However, the same news could not be said to these 2 currencies: Australian Dollar (AUD) & Hong Kong Dollar (HKD) which remained stagnant in front of USD.

Source: https://www.cnnindonesia.com/ekonomi/20190711091446-78-411126/the-fed-embuskan-angin-segar-rupiah-perkasa-ke-rp14102-pagi