US Economic Data Disappointing, Rupiah Exchange Rate Potentially Continues Stronger

By : Aldo Bella Putra | Monday, July 31 2017 - 15:11 IWST

5166
5166

INDUSTRY.co.id - Jakarta - The rupiah strengthened early in the Asian trading session on Monday (31/07/2017). That's thanks to the depreciation experienced by the United States dollar (US) post-release of disappointing US economic data on Friday (28/07/2017) last week thus disclosed Putu Agus Pransuamitra, money market analyst PT Monex Investindo.

According to US economic data, Uncle Sam's economic growth in the second quarter of this year grew 2.6% compared with the first quarter of 1.4%.

"However, the price index of GDP (Gross Domestic Product), which is the benchmark of inflation rate in the US, shows a decline to 1% in the second quarter of 2017 compared to 1.9% in the first quarter of 2017," Putu said in Jakarta on Wednesday (31 / 07/2017).

In addition, Putu said, the increase in labor costs also showed a decrease to 0.5% in the second quarter of 2017 compared to 0.8% in the first quarter of 2017.

Putu said the GDP price index data and labor cost data damped market participants' estimates that the Federal Reserve as the US central bank would raise interest rates more aggressively. The reason is, the low inflation rate in the US is still a major factor for Federal Reserve officials, including Janet Yellen as the central bank's governor, in taking policy interest rate hikes there.

Therefore, FedWatch owned by CME Group estimates the market still sees the possibility of US interest rate hike in December is still below 50%. Meanwhile, the rupiah exchange rate in Asian markets still has the potential to continue strengthening in the rest of the trading today with the target at 13,315. (Abraham Sihombing)

News Comment

Today's Industry

PT Surya Esa Perkasa Tbk. (ESSA: IJ)

Selasa, 26 September 2023 - 07:45 WIB

ESSA Secures Gas Contract Extension for LPG Refinery

PT Surya Esa Perkasa Tbk. (ESSA: IJ), a publicly listed company engaged in the Energy and Chemical sectors through its LPG (Liquefied Petroleum Gas) refinery and Ammonia plant today (22/9) announced…

(kiri-kanan) Cahyo (operations manager PT Eco Paper Indonesia), Kuswara ( Direktur ALDO), Herwanto Sutanto (Presdir ALDO), dan Herlambang Putra Sujadi (Direktur PT Eco Paper Indonesia)

Selasa, 26 September 2023 - 06:45 WIB

ALDO Strengthens PT Eco Paper’s Business of Recycled Brown Paper Production

PT Alkindo Naratama Tbk (ALDO), a listed company engaged in the integrated paper and chemical business, plans to inject additional working capital of around IDR 40 billion into its subsidiary…

"CLEO", PT Sariguna Primatirta Tbk (Tanobel Group)

Sabtu, 23 September 2023 - 11:33 WIB

Growing Above Industrial Average, CLEO Strives for Innovation

Producer of bottled drinking water with the brand "CLEO", PT Sariguna Primatirta Tbk (Tanobel Group) targets its sales in 2023 to grow above the average of the bottled drinking water (AMDK)…

PT Inocycle Technology Group Tbk ("INOV")

Kamis, 14 September 2023 - 15:15 WIB

INOV Poised to Absorb PET Recycling Market Potential

The prospects of PT Inocycle Technology Group Tbk ("INOV") a public company in the field of recycling plastic (PET) bottle waste into Recycled Polyester Staple Fiber (Re-PSF), looks bright for…

Participants of the 43rd ASEAN Summit enjoy the gala dinner at Hutan Kota GBK in Jakarta, Wednesday (09/06). (Photo by: BPMI of Presidential Secretariat)

Senin, 11 September 2023 - 09:07 WIB

Indonesian Cuisine, Cultural Performances Enliven Gala Dinner of 43rd ASEAN Summit

President Joko “Jokowi” Widodo and First Lady Iriana Jokowi hosted a gala dinner for leaders of ASEAN member states, partners, and international organizations at Hutan Kota restaurant in…