The exchange rate of the rupiah against the US dollar (US) is still weak in today's spot trade. However, the weakening of the rupiah was rather thin, because there was good news from US-China trade relations.
On Thursday (02/14/2019) at 11:00 WIB, US $ 1 is priced at Rp. 14,080. The rupiah was still weakening 0.18% compared to the closing position of the previous day's trade.
Even though it is still weak, the rupiah's performance has improved. Shortly before, the rupiah depreciation had almost touched the 0.3% level.
Improvements in the performance of the rupiah are inseparable from external positive sentiment. Bloomberg reported, as quoted by Reuters, US President Donald Trump was considering extending the term "ceasefire" with China.
For information, at the Trump meeting with Chinese President XI Jinping in Argentina in December last year it was agreed that the two countries would not raise import duty rates for 90 days. The calm period will end on March 1.
To fill 90 days, Washington and Beijing negotiated intensively. This week, the US delegation traveled to Beijing to conduct a trade dialogue. The US contingent was led by Chairman of Trade Representative Robert Lighthizer while at the opposite table was commanded by Deputy Prime Minister Liu He.
If in the 90 days there was no agreement, the US would raise the import duty tariff for imports of Chinese products worth US $ 200 billion from 10% to 25%. That step almost certainly invited a counterattack from China so that a trade war erupted again.
Quoting several sources, Trump is considering extending the calm period for 60 days starting March 1. According to them, Trump is trying to give time for a deeper discussion.
The news immediately became an adrenaline injection for the Asian financial markets. The majority of Asian currencies strengthened, and the strengthening was getting sharper. While currencies that are still weakening, such as the rupiah, have managed to reduce the distance.
https://www.cnbcindonesia.com/market/20190214053549-17-55416/kalau-tidak-ada-kabar-baik-dari-china-bisa-bahaya
Follow
