Update COVID-19 in Indonesia: 3,293 confirmed infections, 280 deaths (9 April 2020)
9 April 2020 (closed)
USD/IDR (16,241) -4.00 -0.02%
EUR/IDR (17,636) -23.03 -0.13%
Jakarta Composite Index (4,649.08) +22.38 +0.48%
Weakening of Indonesian Rupiah Against US Dollar is Part of Global Trend
According to various analysts and the central bank of Indonesia, the weakening of the IDR rupiah should not be too alarming as there currently is a global trend in which currencies, worldwide, weaken against the US Dollar. This situation is triggered by the economic recovery that has been experienced by the world's largest economy recently. Compared to other ASEAN members, the rupiah's decline is normal. The central bank adds that foreign capital inflows will return and will strengthen the country's currency.
Despite Indonesia's higher benchmark interest rate (which was raised by 50 bps to 6.50 percent on 11 July), the rupiah continued its weakening trend, even surpassing the psychological boundary of IDR 10,000 per US dollar.