Indonesian rupiah drops to four- year The rupiah dropped to its - TopicsExpress



          

Indonesian rupiah drops to four- year The rupiah dropped to its lowest since late July 2009 today after Indonesian GDP fell below 6 per cent for the first time since Q3-2010. It now takes 10333 rupiah to buy one US dollar, 10.5 per cent more than the decade-average. The currency has been dropping as the archipelago nation finds itself subject to investment outflows as the Federal Reserve talks up its exit plans. Less stimulus from the Fed means fewer investors are sending cash abroad in search of better returns. The currency weakened 5.5 per cent this year and 22 per cent in the last 24 months. Last month alone, the rupiah fell 2.53 per cent — its worst performance in 14 months. As with India’s rupee, the rupiah is coming under pressure because of Indonesia’s wide current account deficit and the prospect of inflation (CPI jumped to 8.6 per cent in July from 5.9 per cent in June, after the government cut fuel subsidies to save its balance sheet).
Posted on: Fri, 02 Aug 2013 12:18:56 +0000

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