A Surprise Ang Pao for the Market
On Tuesday, traders who were ready to go home at the close of afternoon trading got a surprise when they read the news on their computer screen that Bank Indonesia (BI) had just cut its SBI rate by 25 basis points to 7.5 percent. They immediately had to scurry back to their trading desks and pick up orders that were flooding in. There was a flurry of rupiah selling trades into US dollar as investors unwound their rupiah positions, given the currency's reduced yield.
As a result, the rupiah tumbled and weakened to close Tuesday at its lowest Rp12,870 per US dollar level. But the next day with Chinese New Year looming, trading activity returned to normal and the rupiah slightly rebounded to Rp12,838 per US dollar finally closing the week at Rp12,825 per US dollar.
February 24, 2015
On Tuesday, traders who were ready to go home at the close of afternoon trading got a surprise when they read the news on their computer screen that Bank Indonesia (BI) had just cut its SBI rate by 25 basis points to 7.5 percent. They immediately had to scurry back to their trading desks and pick up orders that were flooding in. There was a flurry of rupiah selling trades into US dollar as investors unwound their rupiah positions, given the curre
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