Menu

Search

  |   Insights & Views

Menu

  |   Insights & Views

Search

Rupiah hits lowest since 1997/98 Asian currency crisis

Indonesian Rupiah has touched lowest level in 17 years today, as falling dollar managed to gain against emerging counterparts.

Dollar is heavily down against developed market peers today but managed a sizable gain against emerging market peers.

Indonesia is Emerging Asia's one of the largest commodity exporters. Indonesia is large exporter of palm oil (whose price is hovering close to 2009/10 low), crude oil and coal. Commodity rout is pushing the value of Rupiah lower as market awaits first rate hike from US this year.

However, the situation is not like 1997, when local companies were not unable to payback huge foreign currency debt. The country also had large debt to GDP ratio, compared to 20% as of now.

However, lower prices of commodities are adding to current account deficit, which seems to widening in Indonesia. Moreover, this current account deficit is being funded by short term portfolio flows and with FED Reserve ready to hike rates this year, Indonesia remains vulnerable to foreign outflow.

With no respite for commodities in sight, Rupiah is likely to remain weak against developed market peers.

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

September 25 14:30 UTC Released

USTexas Serv Sect Outlook

Actual

25.6 bln

Forecast

Previous

21.5 bln

September 25 14:30 UTC Released

USDallas Fed Services Revenues

Actual

26.9 %

Forecast

Previous

21.5 %

January 31 00:00 UTC 342298342298m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 342298342298m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 354118354118m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 342298342298m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 354118354118m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 342298342298m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 342298342298m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 342298342298m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.