The fall of Indonesian stocks and the rupiah on Wednesday (12/08) is much more severe than had previously been expected. By 11:14 am local Jakarta time, the benchmark Jakarta Composite Index had fallen 3.12 percent to 4,478.56 points, while the rupiah had depreciated 1.75 percent to IDR 13,845 per US dollar according to the Bloomberg Dollar Index. Across Asia, emerging markets are badly affected (for a second straight day) by China’s decision to devalue its yuan. The yuan is now at its weakest level since October 2012.

Read more ›

Indonesian stocks are experiencing a remarkable fall on Tuesday (11/08). In the first trading session, the benchmark stock index (Jakarta Composite Index) plunged 2.15 percent to 4,646.95, its lowest level since early March 2014 and leading declines among Southeast Asian stock indices. Stocks in Asia have been hit by China’s decision to allow its currency to weaken against the US dollar (the yuan fell 1.6 percent against the US dollar after the move dragging down other Asian currencies including the Indonesian rupiah).

Read more ›

The Indonesian rupiah continues to depreciate on Tuesday (11/08). By 11:16 am local Jakarta time, the rupiah had depreciated 0.14 percent to IDR 13,570 per US dollar according to the Bloomberg Dollar Index. Indonesia’s currency has been touching 17-year lows due to bullish US dollar momentum ahead of looming higher US interest rates. Today, the US dollar received additional strength as China allowed its currency to weaken to a three-year low, dragging down other currencies in the Asian region.

Read more ›

The Indonesian rupiah continued to depreciate on Friday (07/08). Based on the Bloomberg Dollar Index, Indonesia’s currency depreciated 0.09 percent to IDR 13,541 per US dollar on the last trading day of the week. As such, the rupiah continued to flirt with a 17-year low. With US nonfarm payrolls expected to improve at a steady pace, implying that an US interest rate hike may come sooner than later, the US dollar’s bullish momentum persisted. Meanwhile, Indonesia’s foreign exchange reserves fell by USD $40 million in July.

Read more ›

Once again, the Indonesian rupiah depreciated beyond the IDR 13,500 per US dollar level on Wednesday (05/08), touching its weakest level since the Asian Financial Crisis (which began as a financial crisis but would soon develop into a deep economic, political and social crisis in Indonesia) in 1997-1998. For some Indonesian policy makers, business players and investors the current weak rupiah therefore brings back bad memories. However, there are significant changes between conditions now and those in 1997-1998.

Read more ›

There are still persistent external and internal factors that make it difficult for Indonesian stocks to rise. By 12:07 am local Jakarta time, Indonesia’s benchmark stock index (Jakarta Composite Index) was down 0.25 percent to 4,788.37 points. Meanwhile, the rupiah had appreciated 0.36 percent to IDR 13,462 per US dollar by the same time according to the Bloomberg Dollar Index. What are the external (foreign) and internal (domestic) factors that influence the performance of Indonesian assets on today’s trading day (04/08)?

Read more ›

In line with the general trend in Southeast Asia, Indonesian stocks traded mostly higher on the last trading day of the week. Despite not-so-good H1-2015 corporate earnings reports from the larger listed Indonesian companies, the benchmark Jakarta Composite Index was up 1.33 percent to 4,775.10 points in the first trading session on Friday (31/07). According to market watchers, Indonesia’s index is experiencing a technical rebound after falling earlier this week. However, the index is still on track to post its second straight monthly decline.

Read more ›

Similar to yesterday, Indonesian stocks and the rupiah are still moving cautiously on Thursday (30/07). Supported by yesterday’s rising US stocks and today’s mostly rising stocks in the Asia-Pacific region, the benchmark Jakarta Composite Index climbed 0.22 percent in the first trading session on Thursday. However, the latest statements from the US Federal Reserve also signal that a US interest rate hike is coming closer, hence giving rise to a stronger US dollar at the expense of most global currencies and the gold price.

Read more ›

Indonesian stocks and the rupiah continued to weaken on the first trading day of the week, especially due to negative global market sentiments. China’s Shanghai Composite Index tumbled a staggering 8.48 percent on Monday (27/07), its worst daily percentage fall since February 2007. Furthermore, Wall Street closed broadly lower on Friday (24/07) for the fourth straight day. Meanwhile, the Indonesian rupiah continued to depreciate against the US dollar, making Indonesian assets unattractive to foreign investors.

Read more ›

It is expected to be another difficult day for Indonesian stocks and the rupiah as there are few to none positive market sentiments that can support these assets on today’s trading day. Wall Street closed lower on Thursday (23/07) for the third consecutive day on disappointing financial results of several big companies, dragging down indices in the East. Commodity indices continue to fall (oil returning to bear market on resilient US output and rising OPEC supply). Meanwhile, sharp rupiah depreciation makes investors nervous.

Read more ›

The Indonesian rupiah exchange rate appreciated 0.14 percent to IDR 11,581 per US dollar on Wednesday based on the Bloomberg Dollar Index. The currency is now at its strongest level since 25 November 2013 as it regained trust of international investors. In 2013, the rupiah weakened sharply after speculation emerged that the Federal Reserve would scale back its quantitative easing program. In combination with the country's record high current account deficit and high inflation it led to large capital outflows from Southeast Asia's largest economy.

Read more ›

The Indonesian rupiah exchange rate had depreciated (0.15 percent) to IDR 11,665 per US dollar on Thursday (27/02), 15:00 local Jakarta time, based on the Bloomberg Dollar Index. Governor of Bank Indonesia Agus Martowardojo stated yesterday to expect the currency to stabilize near current levels in line with its economic fundamentals ahead of looming further Federal Reserve tapering. Analysts estimate that Indonesia's trade balance might deteriorate in January 2014 as the impact of the mineral-ore export ban kicks in.

Read more ›

The Indonesian rupiah exchange rate continued its recent appreciating trend on Monday (17/02). Based on the Bloomberg Dollar Index, the currency strengthened 0.39 percent to IDR 11,785 per US dollar at 16:00 local Jakarta time. Main reason for this renewed confidence in the rupiah is Indonesia's current account deficit, which eased significantly by the end of 2013. According to Bank Indonesia, the deficit eased from 4.4 percent of gross domestic product (GDP) in the second quarter of 2013 to 1.98 percent of GDP in Q4-2013.

Read more ›

Despite the release of positive macroeconomic data on Monday (03/02), Indonesia's rupiah exchange rate depreciated 0.22 percent to IDR 12,240 per US dollar based on the Bloomberg Dollar Index. China’s Manufacturing PMI fell to a six-month low of 50.5 in January and put pressure on stocks and currencies in emerging markets. Moreover, the Federal Reserve's further reduction of its quantitative easing program (to USD $65 billion per month) continues to strengthen the US dollar at the expense of emerging currencies.

Read more ›

In the Bloomberg Dollar Index, Indonesia's rupiah exchange rate depreciated 0.47 percent to IDR 12,238 per US dollar on Monday (27/01). The decline of the rupiah was in line with today's trend of weakening Asia Pacific currencies (against the US dollar). Meanwhile, the central bank's mid rate (the Jakarta Interbank Spot Dollar Rate or JISDOR) depreciated 0.17 percent to IDR 12,198 per US dollar. Market participants are concerned about Indonesia's January 2014 inflation and further Federal Reserve tapering.

Read more ›

The Indonesia rupiah exchange rate depreciated 0.13 percent to IDR 12,181 per US dollar based on the Bloomberg Dollar Index on Friday (24/01). Asian currencies felt the impact of a contraction of Chinese manufacturing as HSBC’s preliminary Purchasing Managers’ Index slipped to 49.6 in January 2014. Meanwhile, US existing homes sales in December were best since 2006 while US jobless claims were near a six-week low. These data fuel speculation that the Fed will continue to wind down its bond-buying program.

Read more ›

The Indonesia rupiah exchange rate depreciated 0.18 percent to IDR 12,165 at 16.30 local Jakarta time on Thursday (23/01), based on the Bloomberg Dollar Index. Main reason for this decline is concern that Indonesia's central bank (Bank Indonesia) will maintain its benchmark interest rate (BI rate) at 7.50 percent despite an expected increase in January inflation due to massive floods as well as higher industrial electricity and LPG prices. Indonesia's January inflation rate is estimated to be around 1 percent.

Read more ›

Based on the Bloomberg Dollar Index, the Indonesia rupiah exchange rate had depreciated 0.18 percent to IDR 12,113 per US dollar at 14:45 local Jakarta time on Monday (20/01). The most important factor that caused this negative performance was China's slowing economic growth in quarter IV-2013. In the fourth quarter of 2013, China's GDP grew 7.7 percent, down from 7.8 percent in the previous quarter. This slowing growth indicates that China's economic 'recovery' is still fragile (China is among the five most important trade partners of Indonesia).

Read more ›

On Wednesday (15/01), Indonesia's rupiah exchange rate depreciated 0.37 percent to IDR 12,095 per US dollar at 14:15 local Jakarta time. Global markets are again in anticipation of the Federal Reserve tapering issue after the Fed officials of Philadelphia and Dallas stated that they support an as-soon-as-possible winding down of the US stimulus program after the release of strong US retail data. The tapering will make it very hard for emerging currencies to gain against the US dollar. At 28-29 January, the Federal Reserve will hold its next meeting.

Read more ›

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).

Read more ›