Update COVID-19 in Indonesia: 59,394 confirmed infections, 2,987 deaths (2 July 2020)
2 July 2020 (closed)
USD/IDR (14,516) +175.00 +1.22%
EUR/IDR (16,342) +219.24 +1.36%
Jakarta Composite Index (4,966.78) +52.39 +1.07%
In line with other Asian emerging markets and currencies, Indonesian stocks and the rupiah are weakening on Friday (25/09) after Federal Reserve Chairwoman Janet Yellen said during her speech at the University of Massachusetts that US interest rates are likely to be raised before the year-end, provided no economic shocks occur. Yellen stated that most FOMC participants agree on a Fed Fund Rate hike later this year, followed by gradual further monetary tightening thereafter.
Yesterday, when Indonesian markets were closed due to Idul Adha celebrations (the Muslim Day of Sacrifice Day), US and European stocks were mostly down on concern about sluggish global economic growth and the Volkswagen emissions scandal. Caterpillar was one of the largest losers after it cut its forecast for 2015 revenue and announced to cut jobs.
While data show that consumer prices in Japan fell for the first time in more than two years (April 2013), Japanese stocks did not plunge, possibly on expectation that the Bank of Japan will provide additional stimulus. By 11:26 PM EDT, the Nikkei 225 Index was down by 0.06 percent only.
Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.46 percent to IDR 14,690 per US dollar, a fresh 17-year low. So far this year the rupiah has depreciated nearly 18 percent against the greenback.
Indonesian Rupiah versus US Dollar (JISDOR):| Source: Bank Indonesia
By 10:43 am local Jakarta time, Indonesia’s benchmark Jakarta Composite Index (IHSG) was down by 0.84 percent to 4,208.88 points.