A Vicious Cycle in Brewing
There was an unexpected acceleration on the rupiah’s slump last week.
There was an unexpected acceleration on the rupiah’s slump last week. Once it flew past the psychological boundary of Rp15,000 per US dollar, the momentum carried it to almost Rp15,200 at the end of the week. What was going on?
The main factor that kept the rupiah under pressure since is still present, and has in fact grown stronger. After raising its benchmark interest rates by 0.25 percent on September 26, The Federal Reserve has signale...