IDR is strengthening by the Feds. (Image via Market Bisnis)

The Fed cranks IDR up to Rp13,658/USD

On Wednesday’s foreign exchange (forex) spot market opening, Indonesian Rupiah (IDR) is seen at Rp13,658 against the U.S Dollar (USD). The rate strengthened by 0.12 percent compared to Tuesday’s closing rate at Rp13,638/USD. For today, IDR is moving around Rp13.630 - Rp13.680/USD.

Today, the majority of currencies in Asia – ASEAN regions strengthened against the USD. Thai Baht (THB) strengthened by 0.15 percent, New Taiwanese Dollar (NTD) by 0.11 percent, Philippines Peso (PHP) by 0.10 percent, and both Malaysian Ringgit (MYR) and Indian Rupee (INR) strengthened by 0.02 percent.

However, instead of strengthening, S. Korean Won (KRW) weakened by 0.11 percent, Japanese Yen (JPY) by 0.07 percent, Turkish Lira (TRY) by 0.05 percent, and Singaporean Dollar (SGD) by 0.03 percent against the USD.

On the other side of the world, the majority of currencies in the developed countries region also strengthened against the USD. Great Britain Pound sterling (GBP) and the Australian Dollar (AUD) strengthened by 0.03 percent and 0.26 percent respectively.

The Canadian Dollar (CAD) weakened slightly by 0.01 percent, while the European Union Euro (EUR) remains stagnant against the USD.

Indonesian forex experts explained that the positive sentiment from the U.S central bank, the Federal Reserve (the Fed), was the main factor behind the strengthening. The Governor of the Fed, Jerome Powell, stated that the U.S economy remains strong.

However, Powell also reminded the U.S about the threat of the novel coronavirus from China that might halt the global economic growth. The novel coronavirus also affected the “Phase One” implementation between China and the U.S. Hence, it might push IDR as a risk asset.

IDR is still benefited from the trend since Indonesia has not announced any confirmed case.

Source: https://bit.ly/2Sj3Fez