Rupiah falls before balance of trade release

Jakarta (ANTARA) – Indonesia’s rupiah closed down seven points to Rp13.680 in the Jakarta interbank market Tuesday against the United States dollar before the release of Indonesia’s balance of trade for December 2019 to be announced January 15.

“Indonesia’s balance of trade for December 2019 may be in deficit, but it may not be as bad as the figure the previous month,” PT Gaaruda Berjangka Director Ibrahim Assuaibi said in Jakarta.

A group of analysts predicted exports contraction by 1.9 percent year-on-year, while imports contraction rate at 4.4 percent (y-o-y), according to a market consensus. Following the forecast, Indonesia’s balance of trade’s deficit may reach US$456.5 million.

However, on the external front, China and the United Sates (U.S.) may end a trade war as both sides are scheduled to formally ink the phase one trade deal soon. The two countries are now still working on translating the document into the Mandarin language, said U.S. Trade Representatives Robert Lighthizer, citing the final draft will be published on January 15, 2020.

Following the upcoming trade deal, Beijing has agreed to purchase American agricultural products worth $40 billion to $50 billion per year, the U.S. Finance Secretary Steven Mnuchin reaffirmed. For two years, the U.S. will export their agricultural products worth US$200 billion.

“The trade deal may trigger optimism among investors,” Assuaibi remarked.

During the morning trading, the rupiah opened higher to Rp13.655 against the dollar. Throughout the day, Rupiah has moved between Rp13.642 and Rp13.690.

Source: Antara News