Thanks to the trade war negotiation between the U.S and China, IDR rose again. But, IDR still must anticipate. (Image via Vibiznews)
U.S - China brings back negotiation, IDR rises again to Rp14,085/USDOn Wednesday’s opening day of the foreign exchange (forex) spot market, Indonesian Rupiah (IDR) is seen at Rp14.085 against the U.S Dollar (USD). The rate rose by 0.04 percent compared to the rate on Tuesday’s closing at Rp14.090/USD.
For Wednesday, IDR is moving around Rp14,020 to Rp14,100/USD.
Today, the majority of Asian and ASEAN currencies are weakening against the USD. S. Korean Won (KRW) weakened by 0.17 percent, Turkish Lira (TRY) 0.16 percent, Philippines Peso (PHP) 0.13 percent, Malaysian Ringgit (MYR) 0.09 percent, and Singaporean Dollar (SGD) 0.04 percent.
Meanwhile, Chinese Yuan (CNY) weakened by 0.03 percent, and Japanese Yen (JPY) slightly withered against the USD by 0.02 percent.
On the other hand, the Thai Baht (THB) and the Hong Kong Dollar (HKD) remain stagnant against the USD.
The majority of currencies of the developed countries are also withering against the USD. Great Britain Pound sterling (GBP) withered by 0.06 percent, Australian Dollar (AUD) by 0.05 percent, and Canadian Dollar (CAD) by 0.08 percent.
Only the European Union Euro (EUR) that strengthened slightly against the USD by 0,01 percent.
Indonesian forex experts stated that the strengthening of IDR is due to a positive signal shown amid the trade war between the U.S and China. Last night, it was informed that the U.S changed its heart and said that it is considering to remove the tariff. Therefore, it calms the market’s volatility.
However, IDR needs to anticipate another declining since the U.S has passed the Hong Kong rights bill which might disrupt the negotiation again. China might consider the U.S intervening with the dispute between China and Hong Kong. So, unfortunately, the concern still lurks in the corner.