Rupiah expected to weaken due to poor Chinese economic data

Team Webmaster : The exchange rate of the rupiah against the US dollar on Tuesday is expected to weaken due to unfavorable Chinese economic data.

In early trading Tuesday morning, the rupiah climbed 16 points or 0.10 percent to Rp15, 190 per US dollar from Rp15, 206 per US dollar.

“Today’s Rupiah is expected to weaken due to poor Chinese economic data amid the Fed’s plan to cut rates again until the end of this year,” said Bank Woori analyst Rully Nova when contacted by NEWS in Jakarta, Tuesday.

He said data on China’s economic growth is projected to reach 5 percent in 2024. Meanwhile, China is one of Indonesia’s main trading partners.

From within the country, sentiment is growing related to the government budget deficit that continues to continue the upward trend.

Rully projects the rupiah exchange rate today moves in the range of Rp15, 200 per US dollar to Rp15, 280 per US dollar.

Previously,Finance Minister Sri Mulyani Indrawati noted that the state budget deficit until August 2024 reached Rp153.7 trillion, or 0.68 percent of GDP.

“This year the deficit is designed at Rp522.8 trillion or 2.29 percent of GDP. So, in this case (the deficit in August of) 0.68 percent is still on track for the 2024 state budget,” said Sri Mulyani Indrawati in Jakarta, Monday.

One of the deficits occurred due to state revenue declining 2.5 percent year-on-year (yoy) to Rp1, 777 trillion, while the realization of government spending was on track to reach 58.1 percent of the ceiling, or Rp1, 930.7 trillion. Today-news