Indonesian Rupiah (IDR) has to go down again due to Trump's comment about China. (Image via Vibiznews)
Trump's remarks on China hits IDR to Rp14,104/USDOn Thursday’s opening of the foreign exchange (forex) spot market, Indonesian Rupiah (IDR) is seen weakening at Rp14,104 against the U.S Dollar (USD). The rate weakened by 0.06 percent compared to Wednesday’s closing rate at Rp14,094/USD. For today, IDR is moving around Rp14,050 - Rp14,120/USD.
Today, the majority of currencies throughout Asia – ASEAN regions are weakening against the USD. S. Korean Won (KRW) weakened by 0.51 percent, Malaysian Ringgit (MYR) 0.25 percent, Philippines Peso (PHP) 0.10 percent, Turkish Lira (TRY) 0.05 percent, and Singaporean Dollar (SGD) 0.03 percent. Meanwhile, Thai Baht (THB) and the Hong Kong Dollar (HKD) both weakened slightly by 0.01 percent.
Only the Japanese Yen (JPY) strengthened against the USD by 0.2 percent.
The currencies of some developed countries showed various statuses against the USD. Great Britain Pound sterling (GBP) and European Union Euro (EUR) both strengthened by 0.03 percent. On the other hand, the Australian Dollar (AUD) and Canadian Dollar (CAD) weakened by 0.11 and 0.19 percent against the USD.
Indonesian forex experts explained that the weakening of IDR is caused by the negative signal shown amid the trade war negotiation between the U.S and China.
The President of the U.S, Donald Trump, gave an ill remark because the Chinese did not step up onto the levels he wanted. China might have demanded the U.S to erase more tariffs. In exchange, China will be committed to purchase the U.S farm products.
Making things even worse, the U.S President hinted that the agreement might not be finalized in 2019. There are many agendas where the U.S seems to intervene with China’s violent handling over Hong Kong and the persecution of the Uyghur Muslim group in Xinjiang Province.
Furthermore, the Hong Kong Rights bill has been passed by the U.S Senate and House of Representatives resulting in worse sentiments between the U.S and China. The market is anticipating whether the bill will be signed or rejected by Trump.