Rupiah weakens over concern about global recession

Rupiah weakens over concern about global recession

The US dollar and rupiah. (ANTARA/Shutterstock/pri (Shutterstock)

The market still has doubts about it and is waiting for certainty about the monetary policy from the meeting of the European Central Bank (ECB) that will be made known Thursday
Jakarta (ANTARA) - The rupiah weakened against the US dollar in the Jakarta interbank market on Tuesday evening over fears of a global economic recession.  

The Indonesian currency fell 18 points, or 0.13 percent, to close at Rp14.053 per US dollar compared to Rp14.035 earlier.
 

"The market still has doubts about it and is waiting for certainty about the monetary policy from the meeting of the European Central Bank (ECB) that will be made known Thursday," PT Garuda Berjangka President Director Ibrahim Assuaibi said in Jakarta Tuesday.
 

The ECB is expected to slash the deposit interest rate and offer stimulus including the buyback of bonds.
 

As reported earlier, factories in the European zone particularly Germany are struggling to withstand growth slowdown as a result of the US-China trade war. Hence, ECB President Mario Dragh will not remain silent from attempts to stabilize the European economy.
 

On the internal side, if the market remains volatile as a result of the trade war and Brexit, the central bank will again intervene in the market through a monetary policy mix to make the market attractive, Ibrahim believed.
 

"Looking ahead, BI (Bank Indonesia) and the government will continue to encourage the economy, take pre-emptive measures and be vigilant against the global condition and make a policy to facilitate foreign investment in the country," he said.
 

The rupiah strengthened Rp14.030 against the US dollar Tuesday morning. Throughout the day, the rupiah hovered between Rp14.026 and Rp14.055. 

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