| Source: Bank Indonesia

Today, the rupiah is one of the worst performing currencies in the Asia Pacific against the US dollar. Another contributing factor is that the European Central Bank (ECB) stated yesterday (25/11) that interest rates in the Eurozone will remain low for a while and might even go lower if necessary. This had an appreciating affect on the US dollar.

Since the start of November 2013, the rupiah has fallen 3.6 percent against the US dollar. In 2013 so far, it has depreciated 21.7 percent.

Indonesia Stock Exchange

Indonesia's benchmark stock index (IHSG) fell 1.03 percent to 4,290.36 after the first trading session on Tuesday (26/11). After yesterday's gain - in combination with high market uncertainty - investors seems to prefer to engage in profit taking. Foreign investors recorded a net sell of IDR 32 billion (USD $2.7 million). Particularly, Unilever Indonesia (-2.52 percent), Telekomunikasi Indonesia (-2.33 percent), Bank Central Asia (-1.97 percent), Astra International (-1.53 percent) and Bank Rakyat Indonesia (-1.30 percent) were blue chips that were impacted by foreign selling in the first trading session.