Investors Cautiously Hold Rupiah Due to Widespread Indonesian Trade Deficit
JurnalFakta . Investor interest in emerging market currencies, including Indonesia, slumped in trading this week. The reason is that the market is increasingly worried about slowing global economic growth. "Concerns about various geopolitical risk factors triggered buying sentiment towards the Dollar which increasingly hit the emerging market currencies," said Lukman Otunuga, FXTM Research Analyst on Tuesday (12/18/2018). Lukman explained, the rupiah had difficulty surviving against the US dollar due to cautious sentiment and more Indonesian economic data, adding to the pressure on this currency. The Central Bureau of Statistics (BPS) in its latest report said Indonesia recorded the widest trade deficit for more than the last five years in November 2018 due to a decline in exports. The trade deficit reached $ 2.05 billion, so the Rupiah threatened to close in 2018 was not encouraging. Although the Fed is expected to increase interest rates this week, Bank Indonesia is unlikel...