Rupiah Rebounds to 17,762 After 75-Basis-Point Hikes as Jakarta Stocks Jump 5%
Updated
Updated · South China Morning Post · Jun 17
Rupiah Rebounds to 17,762 After 75-Basis-Point Hikes as Jakarta Stocks Jump 5%
3 articles · Updated · South China Morning Post · Jun 17
Summary
17,762 per dollar marked the rupiah on Wednesday, recovering from last week’s record low of 18,000 after Bank Indonesia tightened policy aggressively.
75 basis points of back-to-back rate increases lifted the benchmark rate to 5.5%, a swift and unusual move that analysts said helped steady the currency.
5% was the Jakarta Composite Index’s gain on Monday, offering relief after turbulence had erased more than 32% of the market’s value over the previous six months.
Higher borrowing costs still threaten middle-class spending and broader growth, even as the currency rebound and a successful sovereign wealth fund debut improve near-term sentiment.