Trade war showing positive signs, Indonesian Rupiah (IDR) is going up against the U.S Dollar (USD). (Image via Kompas.com)

Trade war shows alleviation, IDR strengthens to Rp14,060/USD

Alfonsus Adi Putra
Market & Investment
Foreign Exchange & Interest Rate
Oct 22, 2019
1704
On Tuesday morning, the Indonesian Rupiah (IDR) is seen strengthening against the U.S Dollar (USD) at Rp14,060/USD. The rate strengthened by 0.15% compared to Monday’s rate. For today, IDR will remain around Rp14,050 – Rp14,115/USD.

IDR is not alone. Together with IDR, some currencies in the Asia-Pacific regions also showed its might against the USD. Thai Baht (THB) rose by 0.02%, Indian Rupee (INR) 0.03 %, Philippines Peso (PHP) 0.05 %, South Korean Won (KRW) 0.13 %, and Singaporean Dollar (SGD) 0.05 %. Only the Japanese Yen (JPY) weakened against the USD by 0.06 %.

Some economists said that the rise of IDR’s rate against the USD was helped by two factors.

The first factor is the positive vibe coming from the trade talks between the U.S and China. On Saturday last week, China’s Vice Premier, Liu He, said during a technology conference in Nanjing, Jiangxi, that China and U.S have made a “substantial progress” to a “Phase One” agreement.

Furthermore, Liu revealed that both forces are forging an agreement for the country leaders of the U.S and China, Donald Trump and Xi Jinping. The Vice Premier estimated that Trump and Xi will sign the agreement in the Asia-Pacific Economic Cooperation Summit in Chile, held on 16 – 17 November.

The second factor came from the speech by President Joko Widodo, generally known as Jokowi, during his inauguration ceremony on Sunday. Jokowi, during his speech, targeted Indonesia’s gross domestic product (GDP) to grow to US$7 trillion by 2045.

Source: https://bit.ly/31xVaOp

Market , Investment , Forex , IDR , USD , U.S , China , Indonesia , Trade-war , Jokowi