Indonesian Rupiah Exchange Rate Continues Downslide on Wednesday
The Indonesian rupiah exchange rate maintained its downward trend on Wednesday (27/11). Bank Indonesia's mid rate depreciated 0.41 percent to IDR 11,813 per US dollar. Investors remain concerned about Indonesia's wide current account deficit. Today, Finance Minister Chatib Basri said that the current account deficit will be around USD $30 billion by the end of 2013, significantly up from USD $24 billion at the end of 2012. In the third quarter of 2013, the current account deficit was USD $8.4 billion (3.8 percent of Indonesia's GDP).
The depreciation of the rupiah was also brought about by increasing month-end dollar demand from local companies. But the most serious problem remains to be the current account issue because Indonesia's currency is regarded as the most vulnerable Asian currency to capital outflows when the Federal Reserve starts winding down its quantitative easing program, which has fueled dollar inflows into emerging markets.
Indonesia Stock Exchange
The benchmark stock index of Indonesia (IHSG) rose slightly on Wednesday's trading day (27/11). Foreign investors were finally back to purchase more stocks than they sold. Foreign net buying was recorded at IDR 145.14 billion (USD $12.4 million). The IHSG rose 0.38 percent to 4,251.49 points. Of the sectorial indices, Indonesia's infrastructure index performed best as it rose 2.58 percent.
–
Discuss
Latest Reports
- Economic Update Indonesia: Economy Expands at a Rate of 4.95% (Y/Y) in Q3-2024
- Consumer Price Index: After Five Months of Deflation, Indonesia Finally Sees Inflation Again
- Bankruptcy of Textile Giant Sri Rejeki Isman – Challenges Faced by the Textile Industry
- Indonesia Investments Releases October 2024 Report: 'Eight President of Indonesia'
- Prabowo Subianto Officially Inaugurated as Indonesia’s Eight President