Indonesian Rupiah Remains Under Depreciation Pressure Vs. Dollar

Dow Jones
Aug 17

0319 GMT - The Indonesian rupiah remains under depreciation pressure versus the dollar on some headwinds, HSBC's Global FX research team says in a report. These include Indonesia's weakening trade balance, profit repatriation by multinational corporations, and lack of portfolio inflows, the team says. Although rupiah depreciation slowed recently due to Bank Indonesia's rate increases and foreign investor-friendly measures, there's now uncertainty over whether BI will scale back some of its earlier efforts. The team also cites personnel changes at BI in late July and incongruity with the government's "pro-growth" bias. HSBC forecasts the dollar at 18,200 rupiah for end-3Q. The dollar is 0.2% lower at 17,796 rupiah, FactSet data show.

 

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