MUFG's Lloyd Chan says the Indonesian Rupiah is still at risk because rising US interest rates are weakening the support Indonesia's rates provide.Bank Indonesia has moved away from raising rates and is now using other methods to stabilize the currency, like making it cheaper to hedge against foreign exchange risks.However, more money is flowing out of the country and there are concerns about poorer trade results, which means the Rupiah is still facing pressure in the coming months.
Indonesia's support for its currency has weakened because US interest rates have gone up.At the same time, Bank Indonesia is focusing less on raising interest rates and more on other ways to stabilize the currency, such as offering cheaper tools for investors to protect against currency fluctuations.
New foreign investments leaving the country in September and the possibility of lower trade balances in August and September still show that the rupiah is facing pressure.
Indonesia's support for its currency has weakened because US interest rates have gone up.At the same time, Bank Indonesia is focusing less on raising interest rates and more on other ways to stabilize the currency, such as offering cheaper tools for investors to protect against currency fluctuations.
New foreign investments leaving the country in September and the possibility of lower trade balances in August and September still show that the rupiah is facing pressure.
