Turkey's Interest Rate Hike Causes Rising Asian Currencies and Stocks
Asian stocks and currencies strengthened on Wednesday (29/01) after the central banks of Turkey and India tightened their monetary policies in order to attract capital inflows and restore investors' confidence. The central bank of Turkey raised its overnight lending rate aggresively from 7.75 percent to 12 percent on Tuesday (28/01); a measure which managed to calm down Asian markets. According to the Bloomberg Dollar Index, the Indonesia rupiah exchange rate appreciated 0.20 percent to IDR 12,166 per US dollar on Wednesday.
The central bank's Jakarta Interbank Spot Dollar Rate (JISDOR) appreciated significantly by 0.92 percent to IDR 12,154 per US dollar today (29/01).
Indonesian Rupiah versus US Dollar (JISDOR)
| Source: Bank IndonesiaMarket participants are also still eagerly awaiting the outcome of the FOMC meeting held on 28-29 January. It is expected that the Federal Reserve will cut its quantitative easing program by another USD $10 billion per month.
Bahas
Silakan login atau berlangganan untuk mengomentari kolom ini