Update COVID-19 in Indonesia: 70,736 confirmed infections, 3,417 deaths (9 July 2020)
6 July 2020 (closed)
USD/IDR (14,501) +55.01 +0.38%
EUR/IDR (16,343) -41.31 -0.25%
Jakarta Composite Index (5,052.79) -23.38 -0.46%
Amid falling Asian stock indices, Indonesia's benchmark stock index (IHSG) went down 1.08 percent to 4,350.79 points on Wednesday's trading day (20/11). As has become an usual pattern, after one or two days of gain, market participants immediately engage in profit taking the following day. Investors reacted to the OECD's downgrade of its outlook for global economic growth (triggered by slowing growth in emerging markets) and to Indonesia's central bank's higher interest rate (which impacts negatively on the country's economic growth).
The OECD expects that the global economy will expand 3.6 percent in 2014, down from its previous forecast of 4.0 percent. The institution believes that the winding down of the Federal Reserve's quantitative easing program will result in capital outflows from emerging markets and thus holds back global economic growth. Investors seemed more concerned about the OECD growth downgrade than the message that was conveyed in Ben Bernanke's speech late on Tuesday (19/11). Bernanke stated that the Federal Reserve's monthly USD $85 billion stimulus program will continue for as long as needed.
| Source: Bank Indonesia
The Indonesian rupiah exchange rate depreciated against the US dollar as market participants are waiting for results of the FOMC meeting.