Due to the positive vibe from the U.S and China, IDR gains another step against the USD. (Image via Kompas.com)

U.S and China to sign Phase 1 Agreement in Chile, IDR soars above USD

Alfonsus Adi Putra
Market & Investment
Foreign Exchange & Interest Rate
Oct 28, 2019
1938
On Monday morning, Indonesian Rupiah (IDR) is seen strengthening against the U.S Dollar (USD) at Rp14,025/USD. The rate strengthened by 0.09% compared to Friday’s rate at Rp14,038/USD. IDR is moving around Rp13,970 - Rp14,050.

However, the same cannot be said for the majority of currencies throughout the Asian region. Thai Baht (THB) weakened by 0.18 %, Japanese Yen (JPY) 0.08 %, and the Hong Kong Dollar (HKD) and Singaporean Dollar (SGD) weakened by 0.01 %.

Meanwhile, some currencies in the Asian region and developed countries also followed IDR’s stead. S. Korean Won (KRW) strengthened by 0.20 %, Philippines Peso (PHP) 0.12 %, Great Britain Pound sterling (GBP) 0.08 %, Turkish Lira (TRY), and Canadian Dollar (CAD) both strengthened narrowly by 0.07 %. However, the Australian Dollar (AUD) and the European Union Euro (EUR) remained stagnant against the USD.

The foreign exchange (Forex) experts in Indonesia explained that the strengthening of IDR is because of the continuity of positive signals coming from the trade war between the U.S and China. Recently, it is revealed that the U.S and China have agreed that they will sign a “Phase 1” agreement in the upcoming 2019 Asia-Pacific Economic Cooperation (APEC) meeting in Santiago, Chile, held on 16 – 17 November.

Besides, the rumor that the Federal Reserve is going to cut the interest rate also contributed to the IDR’s might. Domestically, the plan of Bank Indonesia (BI) to cut the benchmark interest rate also boosted IDR’s rate against the USD because it may help the growth of Indonesia’s economy.

Source: https://bit.ly/345ANJZ

Market , Investment , Forex , IDR , USD , BI , The-Feds , U.S , China , Trade-War , APEC