Indonesian rupiah falls to a record low, approaching 17,900 against the US dollar
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⑴ The Indonesian rupiah fell to a record low of nearly 17,900 rupiah per US dollar on Thursday, marking the sixth consecutive trading day of decline.⑵ This drop occurred as the US Dollar Index climbed to a seven-week high, following reports of a fresh US military strike on an Iranian facility, weakening prospects for a peace agreement and intensifying concerns about inflation and global interest rates.⑶ The rupiah is set to decline for the ninth straight week, falling about 0.4% so far this week and accumulating a 6.4% drop year-to-date, despite the central bank of Indonesia's larger-than-expected rate hike in mid-May; persistent fiscal pressures and capital outflows continue to weigh on the currency.
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