Correction in Asian markets weighs down on rupiah

Correction in Asian markets weighs down on rupiah

Photo Illustration: Bills of rupiah and U.S dollar. ANTARA/Shutterstocks/pri/gtm

Jakarta (ANTARA) - Indonesia’s rupiah declined 19 points, or 0.14 percent, to Rp13,658 against the US dollar in the Jakarta interbank market on Tuesday morning amid correction in Asian markets.

However, an analyst projected the rupiah to strengthen owing to the market's positive sentiment following a phase one trade deal inked between the US and China last week.

"The US-China phase one trade deal will push the rupiah to strengthen today," Monex Investindo Futures Head of Research Ariston stated in Jakarta.

Despite the positive sentiment, the International Monetary Fund (IMF) slashed its global growth estimate for 2020, to 3.3 percent, from 3.4 percent, since some emerging countries, including India, had recorded sluggish economic growth in the past years.

The IMF's forecast on growth in the global economy may drive negative sentiment in the global market.

"The negative sentiment may impact the value of the rupiah against the US dollar," Ariston remarked.

Ariston has estimated that during the day, the rupiah will hover in the range of Rp13,600 to Rp13,700 against the US dollar. Related news: Rupiah slightly drops before week end holiday

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