Moreover, the Federal Reserve started its two-day meeting today. The institution is expected to continue winding down the bond-buying program, thus causing a stronger US dollar.

Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.28 percent to IDR 11,814 against the US dollar on Tuesday (17/06).

Indonesian Rupiah versus US Dollar (JISDOR):

| Source: Bank Indonesia

Bloomberg reported that Indonesia rejected bids for six- and 29-year Islamic bonds at an auction on Tuesday (17/06) and sold IDR 185 billion (roughly USD $15.6 million) of six-month bills, short of its IDR 1.5 trillion target. This sale is evidence of the government’s confidence of meeting its financing goal even after it revised the budget deficit to 2.4 percent of the country’s gross domestic product (GDP), from 1.69 percent previously.