Rupiah responds negatively to US economic growth data release

Rupiah responds negatively to US economic growth data release

Rupiah and US dollar banknotes (ANTARA FOTO/Puspa Perwitasari)

The US economic development remains solid and shows no signs of strong potential recession.
Jakarta (ANTARA) - The rupiah suffered another correction against the US dollar in the Jakarta interbank market on Friday morning, triggered by the release of the US economic growth data.

"The US economic development remains solid and shows no signs of strong potential recession," Samuel Aset Manajemen economist Lana Soelistianingsih remarked in Jakarta on Friday.

The third announcement indicates that the US economic growth had clocked two percent year-on-year (yoy) in the second quarter of 2019, unchanged from the second announcement, though slowing down from 3.1 percent yoy in the first quarter of 2019 owing to ebbing personal consumption expenditure and exports.

Lana has forecast the rupiah to trade in the range of Rp14,150 to Rp14,180 per US dollar.

"This morning, the strong Asian currencies, including the Hong Kong dollar and Singapore dollar, opened lower against the US dollar that may serve as a sentiment for the weakening rupiah. However, the rupiah will possibly strengthen technically since it had weakened for three consecutive days," she stated.

The rupiah slipped 25 points, or 0.18 percent, to Rp14,190 per US dollar at 10:08 a.m. local time on Friday in comparison with Rp14,165 per US dollar earlier.

According to the Bank Indonesia mid-rate on Friday, the rupiah tumbled to Rp14,197 per US dollar from Rp14,162 per US dollar earlier.

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