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Rupiah down, IDX Composite drops as Trump wins US election
The Bank Indonesia governor said Trump’s presidency could have broad implications for emerging markets like Indonesia, impacting exchange rates and capital flows.
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Pedestrians wait to cross the street as a large digital display shows images of US Republican candidate Donald Trump (top right) and US Democrat candidate Kamala Harris (top left), outside a train station in central Tokyo on November 6, 2024. (AFP/Richard A. Brooks)
T
he rupiah has dropped against a strengthening United States dollar as Donald Trump is the projected winner of the 2024 US presidential election, prompting a rise in “risk-off” sentiment among foreign investors.
Bank Indonesia (BI) quoted the Jakarta Interbank Spot Dollar Rate (JISDOR) at Rp 15,840 on Wednesday, down 0.4 percent from a day earlier.
The greenback was also up against most other currencies as the US dollar index surged 1.56 percent to 105, its highest level since July.
Local stocks dropped, with the Indonesia Stock Exchange (IDX) Composite index closing down 1.44 percent at 7,383.87 on Wednesday. Foreigners also sold more Indonesian stocks than they bought, with $72.51 million in net sales, IDX daily trading data show.
“Trump’s win has led to a 'risk-off' sentiment in the market, as seen in the current data,” Mirae Asset chief economist Rully Arya Wisnubroto told The Jakarta Post on Wednesday.
“BI will likely continue intervening to prevent excessive rupiah weakening and will use tools like SRBI [Bank Indonesia Rupiah Securities] to manage outflows,” Rully said.
Read also: Trump claims victory over Harris in US presidential election
