Most Emerging Asian Currencies Down on China's Slowing GDP Growth
The Indonesian rupiah exchange rate moved within limited range on Wednesday. Based on the Bloomberg Dollar Index, the currency depreciated 0.07 percent to IDR 11,436 per US dollar. Since Thursday (10/04), the rupiah has had to cope with pressures as Indonesia's legislative election was unable to provide political certainty. On the other hand, the country's improved economic fundamentals - easing inflation and the narrowing current account deficit - have resulted in capital inflows, thus supporting the rupiah.
The rupiah's performance today was in line with the performance of most other emerging Asian currencies. These currencies tended to depreciate against the US dollar, partly due to data from China. China's gross domestic product (GDP) rose 7.4 percent (year-on-year) in the first quarter of 2014 - its lowest level in six quarters - thus testing the commitment of China's government to slow credit growth as well as combat pollution as its growth target of 7.5 percent has not been achieved. However, the 7.4 percentage growth result is slightly better than most analysts' forecasts and therefore did not cause considerable damage on today's trading day. China recorded GDP growth at 7.7 percent in the previous quarter.
Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.03 percent to IDR 11,438 per US dollar on Wednesday (16/04).
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