Update COVID-19 in Indonesia: 2,956 confirmed infections, 240 deaths (8 April 2020)
8 April 2020 (closed)
USD/IDR (16,245) -165.00 -1.01%
EUR/IDR (17,659) -75.16 -0.42%
Jakarta Composite Index (4,626.69) -151.94 -3.18%
Rising global stock indices at the end of last week continued to impact positively on Asian stock indices on Monday (21/10), including Indonesia's Jakarta Composite Index (IHSG). Moreover, speculation that the Federal Reserve will not alter its quantitative easing program until early next year also brought along positive market sentiments. This is expected to result in the inflow of US dollars into emerging markets. On Monday, the IHSG rose 0.70 percent to 4,578.18 despite continued foreign selling and rupiah depreciation.
| Source: Bank Indonesia
The Indonesian rupiah exchange rate continued to fall against the US dollar as the Japanese yen and Indian rupee depreciated. The yen fell because exports grew below expectation while the trade balance still recorded a trade deficit. The Indian rupee fell due to speculation that the country's central bank will raise its benchmark interest rate, even though economic growth has reached a low point.
Asian stock indices were up due to investors' belief that the Federal Reserve will not tone down its monthly USD $85 billion bond-buying program. The depreciating yen, after trade data did not meet expectation, had a positive impact on stocks that are export oriented.