The cancelation of the APEC summit in Chile also took its toll for the IDR. (Image via Kompas.com)

Trade agreement delayed, IDR withers against USD

Alfonsus Adi Putra
Market & Investment
Foreign Exchange & Interest Rate
Nov 01, 2019
2057
In the opening spot foreign exchange (forex) market on Friday morning, the Indonesian Rupiah (IDR) is seen weakening against the U.S Dollar (USD) at Rp14,060. The rate weakened by 0.12% compared to its Thursday’s closing rate at Rp14,042.5/USD. For today, IDR is moving around Rp14,000 – 14,100/USD.

Fortunately for other currencies in Asia and ASEAN regions, they strengthened against the USD. Chinese Yuan (CNY) strengthened by 0.23 %, Japanese Yen (JPY) 0.07 %, Thai Baht (THB) 0.03 %, and both Malaysian Ringgit (MYR) and Singaporean Dollar (SGD) strengthened by 0.02 %.

However, some currencies weakened against the USD such as Hong Kong Dollar (HKD) 0.01 %, Indian Rupee (INR) 0.05 %, and Philippines Peso (PHP) 0,1 %.

For some developed countries, the majority strengthened against the USD. Great Britain Pound sterling (GBP) strengthened by 0.12 %, European Union Euro (EUR) 0.04 %, and Australian Dollar (AUD) 0.02 %.

Indonesian forex experts explained the weakening of IDR as the result of the delay in the trade agreement between the U.S and China. The inflation report did not do any significant deal with the IDR’s rate.

On Wednesday, President of Chile, Sebastian Pinera, canceled the APEC meeting in Chile due to the civil unrest in the nation. Supposedly, the President of the U.S, Donald Trump, and his Chinese counterpart, Xi Jinping, were scheduled to sign a “Phase 1” trade agreement during the two-day summit from 16 – 17 November.

Reported by Bloomberg, the Chinese officials showed a skeptical view toward a comprehensive, long-term trade deal between the two countries. The Chinese officials also remained suspicious about Trump’s impulsive behavior and the probability he might back off in the last second before signing the deal.

Source: https://bit.ly/2NuOM5n