Rupiah weakens to Rp17.977 per U.S. dollar on Monday morning
Markets are now awaiting Bank Indonesia's July 22 policy meeting, with the benchmark rate expected to rise to 6 percent.
Markets are now awaiting Bank Indonesia's July 22 policy meeting, with the benchmark rate expected to rise to 6 percent.
Markets are still waiting for US June inflation data and a Fed speech, while surging oil prices limit the rupiah's gains.
Series: Indonesia · Sovereign Credit Rating · 3 chapters since Jul 13Oil prices jumped after US-Iran attacks, pressuring the rupiah; analysts see it trading between Rp18.000 and Rp18.150.
Gapasdap says fares remain 31.8 percent below HPP since the 2019 review, while ship oil prices have risen as much as 60 percent.
The benchmark rate has risen 100 bps in four weeks as Bank Indonesia seeks to draw capital inflows and curb pressure on the rupiah.
The government has written to the national police chief about 274 companies suspected of suppressing prices, even as 90 percent of FFB prices have normalized.
Small businesses face a double hit from weaker household spending and higher import raw material costs, CIPS warns.
Markets see the rate increase as drawing foreign interest, even as the dollar stays firm after stronger-than-expected U.S. PPI data.
The rupiah touched a record low of 18,201 on June 8, while the government has promised stabilization steps this week.
The initial phase covers 250,000 tons to curb tofu and tempeh producers' costs as the rupiah weakens against the US dollar.
The 25-basis-point off-cycle move is the first in eight years as reserves also come under pressure from market intervention.
Earlier: Rupiah opens weaker at Rp17.995 per dollar, near 18,000Series: Indonesian Rupiah · Exchange Rate Slide · 5 chapters since Jun 3The scheme swaps abaca fiber and iron ore without US dollar payments, worth about Rp6,29 trillion a year.
The increase will be tied to a revised RKAB and used only if global prices are seen as favorable.
Rising energy prices and capital outflows are adding pressure on Indonesia's trade balance, stocks and investor sentiment.
Earlier: Rupiah hits Rp 18.015 per dollar as DPR urges quick actionSeries: Indonesia · Rupiah Slide · 7 chapters since Jun 4Firms are also lengthening production timelines, booking ships earlier and diversifying export routes to reduce risk.
The government is preparing closer fiscal-monetary coordination to attract inflows and preserve banking liquidity.
In Q2, foreign inflows reached Rp60.9 trillion, led by Rp99.9 trillion in SRBI, even as stocks saw outflows.