Daily Forex Report

MUFG Bank, Jakarta Branch FOREX DAILY REPORT Friday, July 10, 2020

Major Currencies

Resurgence of new cases across the globe made for a somber tone in markets. Tokyo and the US recorded highs in daily new cases. Hong Kong will close schools again Australia restricts further incoming flights to the country. 

The International Energy Agency warned that virus resurgence could derail the recovery in oil prices. West Texas Intermediate falls below US$ 40 while the 10-year US treasury yield is now below 0.60%. The Yen strengthened by 0.4% against the US Dollar while the greenback was bought in this time of risk-off against the other currencies. USD/CNY back above 7.00 again.

 

USD/IDR

USD/IDR closed above 14,500 as the US Dollar strengthened as a safe haven and the IDR contends with three issues: debt burden sharing between Ministry of Finance and Bank Indonesia, USD demand onshore for dividends, and the number of domestic coronavirus cases.

Onshore interbank IDR market liquidity continues to be flush around IDR 152 trillion and overnight IDR money-market rates now between 3.65%- 3.90%. The Minister of Finance’s statement that the government might consider moving government funds from their Bank Indonesia account to private banks in addition to SOE banks also adds pressure to short-term interest rates amidst soft loan growth. Bank Indonesia will meet for their monthly meeting next week and the consensus expects another cut of 25 bps to bring the 7-Day Reverse Repo rate to a record low of 4.00%.

 

As of today, positive new cases in Indonesia reached 72,347 with 3,469 deaths.

Market close on 10 July 2020                                                             Market close on 10 July 2020 at 3.45 PM

Nikkei                   : 22,290.81   (-1.06%)                                            USD/JPY  : 106.81/ 106.83

JCI                       : 5,031.26    (-0.43%)                                              EUR/USD : 1.1285/1.1287

ID 10Y yield         : 7.018%                                                                  USD/IDR  : 14,525

 

Market close on 9 July 2020                                                                                        

DJI                         : 25,706.09    (-1.39%) 

US 10Y yield         : 0.598%       

 

 

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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