Daily Forex Report

MUFG Bank, Jakarta Branch FOREX DAILY REPORT Friday, October 23, 2020

Major Currencies

The US Dollar reversed its course after gaining early morning approaching the final Presidential Debate. The Euro had dipped to 1.1787 but now is back at 1.1845, unchanged from yesterday. Overall the market continues to have faith for a stimulus deal to be closed before the election, a sweeping Democrat win in November, and also a compromise between the UK and the EU which are all factors supportive to a weaker US Dollar.  In addition, a Joe Biden win is expected to ease trade war hostilities with China seen during President Trump’s administration. The Australian Won, New Zealand Dollar and the Korean Won gained by around 0.5% as this optimism returned by the European opening hours with US equity futures also turning to indicate a positive opening.

 

USD/IDR

 

 

USD/IDR’s upward movement was capped at 14,750 with the turn of sentiment and the IDR managed to strengthen even despite the onshore corporate demand for US Dollar ahead of next week’s long holiday. 

Investment outside the Java area rose by 17.9% YoY in the 3Q20 as such managing to compensate a 12% decline of investment in the Java area to bring total growth by 1.6% YoY to IDR 209 trillion. Foreign direct investments grew by 1.1% YoY to IDR 106.1 trillion with investments from Singapore, US and Japan accounting for 33.8%, 14.9% and 12.2% in that period. Total investment for 9M20 reached IDR 611.6 trillion or growth of 1.7% YoY. Chairman of Badan Koordinasi Penanaman Modal or Investment Coordinating Board said that the governments is looking into incentives to attract more investment outside Java such as tax allowances and subsidies for machinery with regions such as North Maluku showing higher investment for smelter projects.  

There are 4,369 new cases today and as of 23 October 2020, Indonesia has reported 381,910 positive Covid-19 cases.

 

Market close on 23 October 2020                                                    Market close on 23 October 2020 at 3.15 PM

Nikkei                   : 23,516.59    (+0.18%)                                       USD/JPY  : 104.60

JCI                       : 5,112.19     (+0.40%)                                         EUR/USD : 1.1843

ID 10Y yield         : 6.572%                                                              USD/IDR  : 14,680

 

Market close on 22 October 2020                                                                                  

DJI                         : 28,363.66    (+0.54%) 

US 10Y yield         : 0.856%     

 

 

  TREASURY ADVISORY     
Alia Fatmawati, Amanda Kinantya, Amelia Damayanti, Arfilia Amanda,
Argo Aji Nugroho, Caroline Pandea, Dicky A Abdurrahman, Dimas Satya M., Elvinawaty, Evi Nurul Arafah, Kristian Yusak Djumali, Mirawati Pranoto, Muhammad Fajrin, Natasya Ihza, Palmella Putri, Ririn Virgiyanthi,  Ronal Murni, Rudy Sugiharto, Topik Hidayat, Victoria Wikan, 
The above information is elaborated from reliable sources and presented without any responsibility of MUFG Bank, Ltd-Jakarta branch

 

 

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