Paralized and Fuzzy in Rocky Waters
The turmoil in emerging market economies has not died down. The path towards a new equilibrium, after the Federal Reserve drained dollar liquidity in the global market, stretches far ahead. And until that equilibrium is reached, the rupiah will remain under pressure. That is why the US dollar exchange rate wasn’t putting any distance from Rp15,000 throughout last week.
Compounding this pressure, Indonesia’s trade statistics worsened....