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Jakarta Post

Looming US-China currency war to have little impact on rupiah: Analysts

  • Marchio Irfan Gorbiano

    The Jakarta Post

PREMIUM
Jakarta   /   Mon, August 12, 2019   /  09:45 am
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A currency board at a bank shows foreign exchange rates in this file photo. Bank Indonesia and local economists say that the potential currency war between the United States and China would have little effect on the rupiah.(Antara/Sigid Kurniawan)

    The currency war looming between the United States and China has rattled global financial markets, but some analysts and central bankers believe it will not have a significant impact on the Indonesian rupiah. The Chinese central bank allowed the yuan to fall below 7 to the US dollar last Monday, the first time in more than a decade, prompting Washington to label Beijing a "currency manipulator". The yuan depreciation came after US President Donald Trump announced he would slap another round of tariffs on Chinese imports starting Sept. 1, escalating trade tensions between the world's two largest economies. Bloomberg data shows that the rupiah depreciated 0.5 percent last Monday following the announcement from Rp 14.255 per US dollar the previous Friday, Aug. 2, but slowly strengthened during the week to t...