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Jakarta, CNBC Indonesia – The exchange rate of the Singapore dollar drastically weakened in trading on Wednesday (4/11/2020) to hit its lowest level in 3 months.
The provisional results of the US presidential elections (pilpres), showing the superiority of the Democratic candidate Joseph ‘Joe’ Biden over the current Republican Donald Trump, made the rupee powerful.
Releasing Refinitiv data, this morning the Singapore dollar fell 1.31% to IDR 10,571.6 / SG $ on the market stain. This level is the lowest since last August 6. The position of the Singapore dollar improved slightly, at 10:50 AM WIB was at Rp 10,611.05, 0.94% less.
The provisional results of the US presidential elections still show the superiority of Joe Biden. According to data from NBC News, until 10:50 AM WIB Joe Biden stood out with 192 electoral vote while Trump 114. A minimum of 270 is required electoral vote to win the presidential election in the United States.
Biden’s victory could have a positive impact, because the trade war between the United States and China is likely to end.
As is known, the US-China trade war waged by President Trump since 2018 has seen the world economy experience a significant slowdown, including slower economic growth in Indonesia.
When the trade war between the two countries ends, of course, it will be good news that can lift the sentiment of market participants and re-enter risky assets.
The JP Morgan research results released on October 29 also showed the stock market and the countries’ currencies. emerging market he will benefit if Biden becomes No. 1 in Uncle Sam’s country. Because it is said that the trade policies adopted are less impulsive.
In addition to the end of the trade war, if Biden and the Democrats finally come to power, corporate taxes will be raised in the United States. In fact, this has a good impact on Indonesia, because it has the potential to get investors to funnel their capital to emerging market countries like Indonesia.
So in terms of fiscal stimulus, Biden will undoubtedly bring greater value than Trump and the Republican Party.
CNBC INDONESIA INVESTIGATION TEAM
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