Based on the Bloomberg Dollar Index, Indonesia’s rupiah exchange rate depreciated 0.24 percent to IDR 12,301 per US dollar on Wednesday (03/12), the weakest level of Indonesia’s currency in almost six years, as the US dollar rallied, pushing Japan’s yen to a seven-year low, Malaysia’s ringgit to a five-year low, while the Russian ruble experienced record falls. Meanwhile, the euro touched a two-year low amid the sluggish economic growth forecast in the Eurozone. Policies of central banks across the globe have led to significant currency volatility.
While the US dollar has been made more attractive due to the Federal Reserve’s monetary tightening (the ending of the bond-buying program and looming higher interest rates), central banks in Europe and the Far East are engaged in monetary easing to boost local economies and which weakens the local currencies.
Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.15 percent to IDR 12,295 per US dollar on Wednesday (03/12).