Rupiah weakens in accordance with World Bank's revised projection

Rupiah weakens in accordance with World Bank's revised projection

(Illustration) - Officers of foreign exchange services check the notes of rupiah and US dollars in Jakarta. (ANTARA photo/ Puspa Perwitasari / kye / am) .

Jakarta (ANTARA) - The rupiah exchange rate traded between banks in Jakarta on Tuesday afternoon weakened, as the World Bank projected a downward revision of Indonesia's economic growth this year, from 5.2 percent to 5.1 percent.

The rupiah weakened 26 points, or 0.19 percent, to reach Rp14,139 per US dollar, from Rp14,113 per US dollar.

"The slowdown in the domestic economy has been observed in the Central Statistics Agency's report on international trade. In May, exports from Indonesia dropped 8.99 percent year-on-year, while imports tumbled 17.71 percent. Imports dropped, so I am rather restraining myself from expanding," PT Garuda Berjangka President Director Ibrahim Assuaibi stated in Jakarta on Tuesday.

The World Bank has assessed that the risks to Indonesia's economic growth are increasing along with global tensions weighing on world trade.

Nonetheless, Indonesia's economic growth this year can still grow 5.1 percent and increase to 5.2 percent next year.

Moreover, the risk appetite of investors began to shrink after yesterday being lifted by the prospects of a peaceful US-China trade. It turned out that the "strong drug" meeting of US President Donald Trump and Chinese President Xi Jinping last weekend was only effective one day, on Monday (July 1) yesterday, he stated.

"The market thereafter seemed to be stepping on earth again when it realized that real trade peace, poured in black and white, still required a lengthy negotiation process," Ibrahim stated.

The rupiah opened higher by Rp14,124 per US dollar in the morning. During the day, the rupiah hovered in the range of Rp14,124 per US dollar to Rp.14,146 per US dollar.

In the meantime, Bank Indonesia's middle exchange rate on Tuesday showed the rupiah weakening to Rp14,140 per US dollar as compared to Rp14,117 per US dollar on the previous day.

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