The IDR rupiah continued its downward spiral as market participants seem to believe that Bank Indonesia's measure to raise the benchmark interest rate by 50 bps to 6.50 percent last week is not accurate because it is carried out in the context of slowing economic growth. Moreover, previously, the government had raised prices of subsidized fuels, which indicates a tightening of fiscal policy.

| Source: Bank Indonesia

Asian stock indices were up slightly on Tuesday (16/07), supported by American indices on Monday as the Citigroup Inc reported good financial results. Various renowned Japanese companies also posted good results (Best Denki Co, Fuji Heavy Industries, and Nintendo Co). Similarly, a number of Chinese companies reported good results over the first six months of 2013, with the exception of the property sector.