Rupiah hits Rp18.000 per dollar, weakest on record

The rupiah on Thursday (4/6) touched Rp18.000 per US dollar, its weakest level in Indonesia's history. Several international media outlets highlighted the sharp drop as domestic equities came under pressure and investors worried about the fiscal burden from persistently high oil prices. Al Jazeera said the US-Israel war versus Iran is helping drive up energy costs and weighing on Indonesia's trade balance. Asia Times wrote that the currency's decline over the past two months reflects capital outflows, market panic and a shortage of dollar liquidity in the domestic spot market. The Straits Times added that market sentiment has also been affected by the government's plan to directly control exports of several key commodities.