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SERAMBINEWS.COM – The Rupiah and the Asian currencies weaken lately. Indonesia and other Asian countries have to work hard to avoid the threat of the crisis. But until when these conditions will continue and the strongest countries affected to bear this burden.
Kedigdayaan The US dollar (US) has felt more and more. The US dollar rose when the US central bank began raising its benchmark interest rate. High interest rates make the investment in the United States more attractive.
This increase in interest rates is actually the normalization of past policies. The United States has almost zero percent interest after the 2008 economic crisis. The central bank lowered interest rates to boost the economy and forced liquidity.
After the central bank considers the economy of Uncle Sam begins to improve. Rises in interest rates have become more aggressive since last year. This year, the Fed Fund Rate (FFR) rate hike has doubled. The governor of the US Federal Reserve, Jerome Powell, sent two signals of rising interest rates, after rising in March and June
Read: The impact of Rupiah Crash, business difficulties , leverage
yesterday showed US economic growth in the second quarter reached 4.1% on a quarterly basis. With the pace of growing economic growth, the US central bank will have to lift interest to prevent the economy from overheating.
Lately, the exchange rate of the US dollar is getting stronger because the negative sentiment is the trade war. The war that preceded the US protectionist plan intensified, especially against China, which recorded a large trade surplus against the United States.
US President Donald Trump raised import duties on steel and aluminum at the beginning of the year. This action was followed by various plans to impose import duties to encourage domestic production and improve the balance of trade.
The trade war that has erupted since the beginning of the year has provoked a currency war. Many countries are choosing weaker currencies to keep their exports high amid volumes. This is what triggers the remarks of US President Donald Trump on the weakening of the yuan and the euro.
Market badysts say that the recent strengthening of the US dollar is a signal of badet transfer from emerging markets threatened to safe badets. The badet considered the safest up here is the US dollar. The gold like another refuge is almost abandoned. This is evident from the decline in the price of gold.
While the yen was depressed interest rates that never go up. Investments in Japan do not earn as much as investors want. While the United States offers higher interest rates. It's one of the things that trigger an investment in higher dollars.
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