Rupiah strengthened 0.14% compared to close of trading last weekend (Credit : CNBC)

The issue of recession subsided, Rupiah strengthened again from Singapore Dollar

Siti Fatimah Adri
Politics & Economic
International
Aug 19, 2019
1795
The exchange rate of Rupiah against United States dollar (US) moves to strengthen in spot market trading today. US dollar was ousted from the range of Rp.14,200.

On Monday (8/19/2019), US $ 1 was equivalent to Rp 14,210 when spot market opened. Rupiah strengthened 0.14% compared to close of trading last weekend. If Rupiah is able to strengthen further, it is not impossible that US dollar can be lowered to bring that level.

Not only US Dollar, Singapore Dollar weakened against Rupiah in trading Monday (19/8/19). This is because the easing of recession issues that make high-yielding assets such as Rupiah back into target of market participants. Whereas two days earlier, Singapore dollar strengthened 0.21% and 0.11%.

Launching Refinitiv data, on the spot market today at 13:15 WIB, Singapore dollar traded in the range of Rp 10,255.67 or weakened 0.19%. Even at the beginning of trading had weakened 0.47% to the level of Rp 10,227.19.
Although market participants have begun to ignore the signal of a recession in the US, the Singapore economy is showing signs of slowing.

Quoted by Trading Economics, latest data shows that Singapore's economy is barely experiencing growth, aka stagnating because growth rate of Gross Domestic Product (GDP) in second quarter of 2019 is only at the level of 0.1% year-on-year (YoY), lower than the market consensus projecting growth 0 , 2% annually.
Meanwhile, quarterly GDP growth rate (QoQ) recorded a contraction of 3.3%, also weaker than market consensus that projected a contraction at the level of 2.9% QoQ,

Source: https://www.cnbcindonesia.com/market/20190819133840-17-92959/demam-resesi-reda-dolar-singapura-tak-berdaya-melawan-rupiah