Jakarta, CNBC Indonesia – Indonesian financial markets were under pressure again on Wednesday. After breaking the rupee 15,000/US$ for the first time since May 2020, the rupee remained in the limelight.
Meanwhile, the Composite Stock Price Index (JCI), which rebounded successfully last Tuesday, returned to the red zone. That is, JCI has fallen 7 times in 8 trading days.
The issue of a world recession is weighing heavily on the movement of global financial markets, including domestic ones. Americans also think the recession has actually happened. In addition, analysts increasingly refer to Americans as “poor.” Of course, the mentioned poor are not the same as Indonesia.
How things are in Uncle Sam’s country, and the factors influencing today’s market movements, will be discussed on pages 3 and 4.
JCI closed trading down 0.85% at 6,646.410 on Wednesday.
Meanwhile, though the rupee had touched above 15,000/US$, the rupee remained below it. According to data from Refintiv, the rupee fell marginally by 0.07% to Rp 14,995/US$. In this way the rupee has weakened for 7 consecutive days.
The weakening of the rupee has also attracted the attention of Bank Indonesia (BI).
“The main trigger came from global financial markets, where market participants were concerned about a further slowdown in the global economy and even worried it could enter a recession, particularly the US economy, where the latest data in these Supports concerns. While the threat of inflation continues in many parts of the world, the country,” Eddie Susianto, head of the Bank Indonesia’s Department of Economic and Monetary Policy, CNBC Indonesia, said Wednesday (6/7/2022).
The problem of recession in the market continues. Not only the United States, the world is also expected to experience a recession.
“Many central banks today have essentially set aside their mandate, which is to reduce inflation. The credibility of monetary policy is a very valuable asset that should not be lost, so central banks aggressively raise interest rates. Will do,” said Rob Subraman, chief economist at Nomura at the Street event. Science Asia CNBC InternationalTuesday (5/7/2022).
Subraman forecasts that the euro area, the UK, Japan, Australia, Canada and South Korea will also experience recession in the next 12 months.
“It (the bearish issue) encourages global market players to look safe haven currency And safe haven property. safe haven currency US dollar leaning towards and safe haven asset Interested cash market and US Treasury (bonds),” Eddie explained.
“This means that due to the movement of exchange rates, many non-USD currencies, especially EM (emerging market) currencies, have weakened, certainly including the rupiah,” he explained.
Meanwhile, government securities (SBNs) turned around again, but most experienced a consolidation.
Only the SBN periods of 3, 5 and 20 years experienced weakness, as can be seen from the returns (yield) which goes up.
motion yield inversely proportional to the price of the bond, when yield The price rises, and vice versa. When the price rises, it means that a buying action has taken place.
