Due to the raging trade war, IDR is pushed back once again. (Image via Marker Bisnis)

Trade war forces IDR to kowtow to Rp14,120/USD

On Monday’s foreign exchange (forex) spot market, the rate of Indonesian Rupiah (IDR) is seen at Rp14,120 against the U.S Dollar (USD). The rate weakened by 0.09 percent compared to the weekend’s rate. For today, IDR is moving around Rp14,050 - Rp14,150/USD.

Unfortunately, IDR did not share its fate with the other currencies in Asia – ASEAN regions. Today, the majority of currencies in the regions strengthened against the USD. S. Korean Won (KRW) strengthened by 0.24 percent, Philippines Peso (PHP) 0.14 percent, and Chinese Yuan (CNY) 0.06 percent.

Taiwan Dollar (TWD) strengthened by 0.03 percent, and both Singaporean Dollar and Malaysian Ringgit strengthened slightly by 0.02 percent.

However, Japanese Yen (JPY) weakened by 0.17 percent, Turkish Lira (TRY) by 0.03 percent, Thai baht weakened slightly by 0.01 percent against the USD. Meanwhile, Hong Kong Dollar (HKD) remained stagnant against USD.

For the developed countries' regions, the majority of the currencies strengthened against the USD. Australian Dollar (AUD) strengthened by 0.14 percent, Canadian Dollar (CAD) and European Union Euro (EUR) strengthened slightly by 0.02 percent and 0.01 percent respectively.

Only Great Britain Pound sterling (GBP) weakened by 0.14 percent against USD.

Indonesian forex experts explained that the weakening of the IDR was affected by the negative sentiment showed between the U.S and China. The signing of the Hong Kong Rights bill by the President of the U.S, Donald Trump, was the cause all along. China, offended by U.S intervention in Hong Kong protest, promised a retaliatory action.

The incident made the chance of trade negotiation between the two warring countries even smaller, and of course, it affected the forex globally.

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