Rupiah weakens on lower-than-expected first-quarter economic growth

Rupiah weakens on lower-than-expected first-quarter economic growth

"The GDP (gross domestic growth) in the first quarter of 2019 stood at 5.07 percent, lower than the market expectation of 5.19 percent. But if we compare it with that of other countries, it means that the GDP is still solid," PT Garuda Berjangka Pres
Jakarta (ANTARA) - The Indonesian rupiah weakened against the US dollar on the interbank Jakarta spot market on Monday evening with a lower-than-expected economic growth in the first quarter of 2019.

The rupiah fell 32 points or 0.22 percent, to the previous Rp14,298 per US dollar from Rp14,266 per US dollar.

"The GDP (gross domestic growth) in the first quarter of 2019 stood at 5.07 percent, lower than the market expectation of 5.19 percent. But if we compare it with that of other countries, it means that the GDP is still solid," PT Garuda Berjangka President Director Ibrahim Assuaibi said in Jakarta on Monday.

On an external side, negative sentiments over the rupiah included US President Donald Trump's threat to raise the tariffs of Chinese goods worth US$200 billion if the US-Chinese trade negotiations failed to satisfy expectations.

In the meantime, the Chinese central bank responded to Trump's tweet on Twitter by slashing the requirements of small-and medium-sized bank reserves, a move which it believed would release liquidity of 280 billion yuan to stabilize the Chinese economy due to Trump's threat.

The rupiah traded at Rp14,126 per US dollar in the morning session on Monday morning. Throughout the day, it moved within the range of Rp14,126 to Rp14,331 per US dollar.

According to the Bank Indonesia (BI) mid rate on Monday, the rupiah fell to Rp14,308 per US dollar from the previous Rp14,282 per dollar.  

EDITED BY INE

 

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