Sad, the Rupiah is the weakest since May 30, the weakest in Asia

Jakarta, CNBC Indonesia – The exchange rate of the rupee against the US dollar closed down in the spot market today. Various negative feelings from within and from outside the country made it difficult to strengthen the rupee (and other Asian currencies). On Friday (14/06/2019), US $ 1 has a price of 14,320 rupees at the close of the spot market. The rupee is weakened by 0.32% compared to the closing position of the previous day's trading. This is the lowest position of rupiah since May 30th.When the spot market was opened, the rupee increased slightly by 0.04%. But it turned out deadly because the rupee fell in the red zone. Even the rupiah has fallen deeper.

Here is the evolution of the exchange rate of the US dollar versus the rupee throughout the day: This weakening weakened the rupiah for two consecutive trading days, with a depreciation of 0.63%. Previously, the rupiah was strengthened for four consecutive trading days. Perhaps this is one of the reasons why rupiah is weakened. During the four-day appreciation period, the appreciation of the rupiah has reached 1.15%. Last month, the rupee also recorded gains of 0.73%. As a result, it is possible that some investors consider that rupee profits are already quite high. As sales eclipse the country's currency, the risk of weakness is therefore always inherent. In addition, the publication of the latest economic data is also not satisfactory. Bank Indonesia (BI) said retail sales rose 6.7% in April year after year (YoY), much slower than the 10.1% growth recorded the previous month.

Retail sales growth in April was the weakest since November 2018.

Indeed, April did not become the peak of public consumption, as the new Ramadan fell in early May.

However, these data show that people are buying enough, a sign of a slowdown in household consumption.

While household consumption is the most important component of the formation of gross domestic product (GDP), with a share of almost 60%.

When this component is in difficulty, overall economic growth will be slowed down.

The risk of below-forecast economic growth is driving investors into the Indonesian financial market. No wonder the rupiah lacks "blood", so it is weaker.

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(aji / aji)