Jakarta (ANTARA) - The rupiah exchange rate traded among banks in Jakarta on Thursday morning strengthened following the signing of the long-awaited phase one trade agreement between the United States and China on Wednesday (Jan 15).
The Indonesian currency's response to the trade deal was positive, increasing by 56 points, or 0.41 percent, to Rp13,639 against the US dollar, while the earlier rate was recorded at Rp13,695 against US dollar.
"The US-China trade deal may contribute to the spike in the rupiah exchange rate," Samuel Aset Mangement Head of Research Lana Soelistianingsih noted in Jakarta.
She forecast that the rupiah would today hover in the range of Rp13,660 to Rp13,690 against the US dollar.
Following the trade deal inked by President of the United States Donald Trump and Vice Premier of China Liu He in Washington D.C., the latter country promised to import US-manufactured goods, worth US$200 billion, for the subsequent two-year period, one of which include US$40 billion worth of agricultural products.
Despite the deal, the US will retain the tariff imposed on some of China's goods until the signing of the phase two trade deal that had yet to be decided by both nations.
Source: Antara News