Although according to Bank Indonesia's Jakarta Interbank Spot Dollar Rate, the Indonesian IDR rupiah exchange rate appreciated 0.97 percent to IDR 11,830 per US dollar on Tuesday (03/12), the currency declined 0.98 percent to IDR 11,885 as of 02.01 ET according to the Bloomberg Dollar Index. The difference between both rates is caused by the fact that Bank Indonesia's rate had not yet absorbed the positive reaction of market participants toward trade and inflation data that were released on Monday (02/12).
On Monday, the Indonesian rupiah appreciated sharply after Statistics Indonesia announced that Indonesia recorded a slight trade surplus in October 2013 of USD $42.4 million, while inflation in November 2013 was kept at 0.12 percent (month-to-month). Both the country's trade balance (including the wide current account balance) and inflation have been a major concern of most investors this year, particularly in the light of the looming end of the Federal Reserve's quantitative easing program. Today, the positive data regarding November inflation and the October trade surplus translated into the 0.97 percent appreciation of Bank Indonesia's mid rate.
However, according to the Bloomberg Dollar Index, the rupiah fell on Tuesday amid large US dollar demand as local Indonesian companies are eager to buy US dollars at a more attractive exchange rate after yesterday's gain.
Today (03/12), the Indonesian government will sell IDR 4 trillion (USD $337.6 million) of debt in this year's last scheduled auction. Bloomberg reported that "the yield on the 5.625 percent sovereign bonds due May 2023 was little changed at 8.63 percent, prices from the Inter Dealer Market Association show."
Indonesia Stock Exchange
Indonesia's benchmark stock index (IHSG) plunged 0.74 percent during the first trading session on Tuesday (03/12). Investors seem to engage in profit-taking after yesterday's gain amid positive sentiments brought on by Indonesia's trade and inflation data. The infrastructure sector was hit hardest in the first trading session, falling 1.41 percent.