Wednesday, 22 May 2019 | 06:35 WIB

Rupiah Closes Higher on Back of Positive Response to Election Quick Count

Rupiah Closes Higher on Back of Positive Response to Election Quick Count (monex)

JAKARTA, NETRALNEWS.COM - Rupiah exchange rate on the interbank level in Jakarta on Thursday (04/18/2019) has been closed on the uptrend in response to a quick count that showed Presidential Candidate Pair 01 Joko Widodo-Ma'ruf Amin leading the quick count in the 2019 Presidential Election.

The rupiah strengthened 40 points or 0.29 percent to IDR14,045 per US dollar from IDR 14,085 per dollar.

President Director of PT Garuda Berjangka Ibrahim Assuaibi said the markets seemed to positively welcome the quick results of the 2019 Election from a number of institutions. Although it has only been calculated quickly, but usually it will not be much different from the official calculation that will be announced by the General Election Commission (KPU) on May 22, 2019.

"It must be admitted that investors are more comfortable if Jokowi becomes president again. Because, the election of Jokowi gives certainty that government policies will not change significantly. Plus a variety of structural reforms such as revamping the current account deficit or current account will continue," Ibrahim said on Thursday.

Externally, positive sentiment came from the release of the latest economic data from China. In the first quarter of 2019, the Bamboo Curtain country economy grew 6.4 percent (year-on-year/yoy), better than the market consensus collected by Reuters, which was 6.3 percent. Although it has been the slowest pace since 2009, at least China's economic growth has failed to be the weakest since 1990.

In addition to economic growth data, retail sales in China were also satisfactory with a growth of 8.7 percent (yoy) in March, better than the previous month which grew 8.2 percent. Then property investment in China in March also rose 12 percent (yoy).

"This data raises hopes that the Chinese economy will not experience a hard landing, even though there is a slowdown. It seems like stimulus from the government and the Central Bank of China or PBoC can maintain the economic performance of the Bamboo Curtain country," Ibrahim said.

The exchange rate of the rupiah opened the morning at IDR 14,003 per dollar. During the day, the rupiah moved in the range of IDR  14,000 per dollar to IDR 14,052 per dollar.

Meanwhile, Bank Indonesia's middle exchange rate on Thursday showed that the rupiah rose to IDR14,016 per dollar compared to the previous day at IDR14,066 per dollar.