Market Pulse

Currency
Rupiah Drops to its Weakest Level

The rupiah closed at Rp12,436 per US dollar on Friday, exceeding even its lowest level reached during the 2008 Lehman crisis. Bank Indonesia (BI) has intermittently intervened throughout the week to slowdown rupiah's descent, but it did not seem to have much impact and towards the end of the week it appears that it let the rupiah weaken. BI has already used a sizable amount of its international reserves throughout the past few weeks, reflected by a drop in its reserves from US$112 billion last month to its current US$111 billion level. The central bank appeared to be more cautious this time and save the remaining amount for future needs.

December 16, 2014