Indonesia Rupiah Exchange Rate Depreciates at the End of the Week
The Indonesia rupiah exchange rate depreciated 0.13 percent to IDR 12,181 per US dollar based on the Bloomberg Dollar Index on Friday (24/01). Asian currencies felt the impact of a contraction of Chinese manufacturing as HSBC’s preliminary Purchasing Managers’ Index slipped to 49.6 in January 2014. Meanwhile, US existing homes sales in December were best since 2006 while US jobless claims were near a six-week low. These data fuel speculation that the Fed will continue to wind down its bond-buying program.
Weak Chinese manufacturing data imply that market participants are eager to purchase safety assets, such as the US dollar, while the Fed's tapering expectation supports the value of the US dollar compared to most Asian currencies.
The central bank's Jakarta Interbank Spot Dollar Rate (JISDOR) depreciated 0.03 percent to IDR 12,177 per US dollar on Friday (24/01).