From the start of today's trading day (06/01), the Indonesian rupiah exchange rate depreciated against the US dollar. Based on the Bloomberg Dollar Index, Indonesia's currency fell 0.48 percent to IDR 12,238 per US dollar at 13:00 local Jakarta time. This declining trend is in line with the majority of other Asian Pacific currencies. With the exception of the Australian dollar and the Japanese yen, the US dollar appreciated against all Asia Pacific currencies in the morning of Monday (06/01).
The central bank's Jakarta Interbank Spot Dollar Rate (JISDOR) fell 0.03 percent to IDR 12,230 per US dollar on Monday (06/01):| Source: Bank Indonesia
Despite the positive domestic economic data that were released at the start of the year (easing inflation and the November trade surplus), investors seem to be waiting for several events and other (foreign) economic data. On 9 January 2014, the central bank's Board of Governor's meeting will take place and will provide more information about Bank Indonesia's stance on its benchmark interest rate (BI rate). Moreover, Janet Yellen, Vice Chair of the Board of Governors of the Federal Reserve System, is expected to give a speech at the start of this week while the minutes of the Federal Open market Committee (FOMC) are expected to be released as well. Other data that can influence the rupiah's performance are China's inflation data and US employment data.
Last Friday (03/01), Chairman of the Federal Reserve, Ben S. Bernanke, stated that the economy of the USA is expected to improve in 2014. This speech had a positive impact on the value of the US dollar. Bernanke said: "the combination of financial healing, greater balance in the housing market, less fiscal restraint, and, of course, continued monetary policy accommodation bodes well for US economic growth in coming quarters. Of course, if the experience of the past few years teaches us anything, it is that we should be cautious in our forecasts."
Indonesia Stock Exchange
The benchmark stock index of Indonesia (known as the Jakarta Composite Index or IHSG) fell 0.91 percent to 4,219.06 points during the first trading session on Monday 6 January 2014. The biggest loser was Indonesia's agribusiness sector (-2.08 percent). Of the 484 companies whose shares are traded on the Indonesia Stock Exchange, 67 rose, 197 fell and 220 were unchanged.