The Fed supports the IDR rate back to Rp13,639/USD. (Image via Market Bisnis)

The Fed cranks IDR to Rp13,639/USD

Alfonsus Adi Putra
Market & Investment
Foreign Exchange & Interest Rate
Jan 23, 2020
1665
On Thursday’s foreign exchange (forex) spot market opening, Indonesian Rupiah (IDR) is seen at Rp13,639 against the U.S Dollar (USD). The rate strengthened by 0.05 percent compared to Wednesday’s closing rate at Rp13,646/USD. For today, IDR is moving around Rp13,600 - Rp13,700/USD.

IDR is not alone. Today, the majority of currencies of Asia – ASEAN regions continued their strengthening trend. Japanese Yen (JPY) strengthened by 0.14 percent, Turkish Lira (TRY) by 0.06 percent, and both Thai Baht (THB) and Singaporean Dollar (SGD) slightly strengthened by 0.01 percent against the USD.

Nonetheless, some currencies withered instead. Reportedly, S. Korean Won (KRW) weakened by 0.27 percent, the Hong Kong Dollar (HKD) by 0.02 percent, and Malaysian Ringgit (MYR) slightly weakened by 0.01 percent against the USD.

On the other side of the world, the currencies of the developed countries region also continued showing mixed reactions toward USD. Great Britain Pound sterling (GBP) and European Union Euro (EUR) both strengthened by 0.04 and 0.03 percent respectively, and the Australian Dollar (AUD) by 0.34 percent against the USD.

Only the Canadian Dollar (CAD) weakened against the USD by 0.12 percent.

Indonesian forex experts stated that the strengthening of IDR is the result of the positive sentiment from the U.S central bank, the Federal Reserve (the Fed). Reportedly, the Fed injected a US$500 billion fund to the market via repo to stabilize the liquidity.

The fund injection kept the obligation yield rate low at 1.78 percent. Therefore, it also affects IDR.

Nonetheless, the forex experts warned that the ongoing outbreak of mysterious pneumonia from Wuhan, Central China, might disrupt the global economy, pushing the market out of the risk asset; therefore, it might cause another pressure for IDR.

Source: https://bit.ly/2NS2ArP

Politics , Economy , Finance , Trade , Investment , ASEAN , Indonesia , IDR , U.S , The-Fed , USD , Forex