USD/IDR Hits Record High Above 18,000 on Policy Risks, Energy Pressure
The Indonesian rupiah weakened to a new all-time low against the US dollar, breaching the 18,000 level, as policy uncertainty and energy price shocks weigh on the currency. Brown Brothers Harriman analyst Elias Haddad highlighted the pressure on IDR and noted Indonesian equities also slumped to multi-year lows.
The Indonesian rupiah has come under severe pressure, with the USD/IDR pair reaching a fresh record high above 18,000, according to Brown Brothers Harriman (BBH) analyst Elias Haddad. The move reflects growing policy risks and the impact of global energy price shocks on Indonesia's trade balance.
Haddad noted that the rupiah's slide is accompanied by a sharp decline in Indonesian equities, which have fallen to multi-year lows. The combination of domestic political uncertainty and external headwinds from higher energy costs is driving capital outflows and weighing on the currency.
The record high in USD/IDR underscores the challenges facing the Indonesian economy and the central bank's ability to stabilize the rupiah amid a challenging global environment.
Source: FXStreet Forex News