Rupiah Down against US Dollar, Markets Wait for Bank Indonesia Meeting
Indonesia’s rupiah continued to weaken on Monday’s trading day (18/05). The Indonesian rupiah had depreciated 0.22 percent to IDR 13,113 per US dollar by 12:08 pm based on the Bloomberg Dollar Index as market participants are waiting for results of the central bank’s Board of Governor’s Meeting, scheduled for Tuesday (19/05). At this meeting Indonesia’s central bank (Bank Indonesia) will discuss and determine its stance on the country’s interest rate environment. Currently, the key rate (BI rate) is set relatively high at 7.50 percent.
Other domestic economic data that is being awaited by investors is Indonesia’s external debt.
Last week’s trade statistics were mixed. Although Indonesia’s current account deficit improved to 1.8 percent of the country’s gross domestic product (GDP) in the first quarter of 2015 and Indonesia posted a higher-than-expected USD $454.4 million trade surplus in April 2015, the Q1-2015 current account deficit improved less markedly than had been projected, while the April trade surplus was particularly caused by sharply falling imports (signalling slowing economic activity in Indonesia).
Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.19 percent to IDR 13,116 per US dollar on Monday (18/05).
Indonesian Rupiah versus US Dollar (JISDOR):
| Source: Bank IndonesiaFurther Reading:
• Dilemma Bank Indonesia: To Cut Interest Rates or Not?
• Indonesia Posts Trade Surplus in April but Concerns about Economy Rise
• Indonesia’s Current Account Deficit Improves to 1.8% of GDP in Q1-2015
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