Indonesia’s rupiah slides over fears of escalation of US-China trade war

JAKARTA, May 8, 2019, ANTARA. Indonesia’s rupiah extended its decline against the US dollar, trading at Rp14,302, Wednesday morning, tanking 22 points than Rp14,280 earlier in the Jakarta inter-bank spot market over investor concerns of the US-China trade war escalating. Economist Lana Soelistianingsih of Samuel Aset Manajemen stated in Jakarta on Wednesday that investors continued to harbor concerns over US President Donald Trump’s threat to China, reported the ANTARA.

“The market sentiment remained negative in the past couple of days after President Trump made a statement in which he warned of slapping tariffs on the import of Chinese goods worth US$200 billion starting next week,” Soelistianingsih remarked.

The stock market too has taken a beating following President Trump’s tariff threat.

Soelistianingsih pointed out that fears of the agreement between the world’s two giant economies derailing also led to the global crude prices plummeting.

The trade war fears have led the Chinese economy to slow down to the tune of 6.4 percent in the first quarter of 2019 than 6.8 percent during the corresponding period last year, while the US economy registered a growth of 3.2 percent as compared to 2.2 percent.

Soelistianingsih has forecast that the rupiah can potentially weaken in the range of Rp14,280 to Rp14,300 per US dollar on Wednesday.

Reporter: Citro Atmoko, Suharto

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