Rupiah depreciates against US dollar over trade deficit

Jakarta (ANTARA) - The Indonesian currency weakened against the US greenback in the Jakarta interbank market on Tuesday evening over the nation's September 2019 trade deficit.

The rupiah plunged 26 points, or 0.19 percent, to Rp14,166 per US dollar in comparison with the earlier close of Rp14,140 per US dollar.

"Looking at the country's trade deficit, Bank Indonesia has continued to intervene in the foreign currency and bond markets through DNDF (Domestic Non-Deliverable Forward). Although the intervention is less satisfactory due to unfriendly external data, the fluctuation of Garuda currency is still well-controlled," PT Garuda Berjangka Director Ibrahim Assuaibi stated in Jakarta on Tuesday.

According to the Central Bureau of Statistics (BPS) data, Indonesia's trade deficit had reached US$160 million, with exports valued at $14.10 billion and imports, at $14.26 billion, in September 2019.

During the January-September period, the trade deficit had reached $1.95 billion, with exports valued at $14.1 billion and imports at $14.26 billion.

Most importantly, the government remains sanguine about the current economic performance. The contribution of exports and imports to the national gross domestic product (GDP) is not so significant, thereby not having a detrimental impact on the national economy, especially in the midst of a global economic slowdown due to the trade war and Brexit turmoil, he cautioned.

The rupiah traded at Rp14,138 per US dollar on Tuesday morning. During the day, it hovered in the range of Rp14,138 to Rp14,168 per US dollar.

According to the Bank Indonesia mid-rate on Tuesday, the rupiah depreciated to Rp14,140 per US dollar as compared to Rp14,126 per US dollar earlier.

Source: ANTARA News

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