Rupiah Down as IMF Cuts Global Projection



Laila Afifa

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  • TEMPO.CO, Jakarta - The rupiah's interbank rate in Jakarta closed down today,  following the IMF's correction over the global economic outlook. The IDR lost 20bps or 0.14% to close at 14.153 per US dollar. 

    "It is likely that IMF's latest projection would bring a gloomy atmosphere to the Indonesian and Asian financial markets," Garuda Berjangka president director Ibrahim Assuaibi said here on Wednesday, April 10. 

    In its World Economic Outlook (WEO) report for April 2019, the IMF projected Indonesia's economic growth to stay at a rate of 5.2%. However, it does not forecast improvements since the economic projections for several of Indonesia's trade partners, such as Japan and India, were corrected.

    Additionally, there are now fears of the possible trade war between the EU and the US. President Donald Trump threatened to impose import duty on European products, which would cost some US$11bn. Trump is upset because the EU allegedly gave more subsidies to Airbus—something he sees as an illicit business practice.