TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsS&P calls for measures to prevent rupiah from further weakening
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
A customer counts banknotes at a money changer at the ITC Kuningan shopping center on Feb. 28. (Antara/Puspa Perwitasari)
The Standard & Poor (S&P) Global Ratings agency has warned the government about allowing the rupiah to weaken further.
While the rupiah is now hovering around Rp 13,700 against the United States dollar, it is important to prevent it from heading to the point where it becomes psychologically threatening for investors, said S&P lead analyst for Indonesia and Malaysia Xavier Jean in Jakarta on Tuesday.
He stressed that the rupiah's depreciation toward Rp 15,000 per US dollar was the level to watch. “Investors feel that Rp 15,000 is the psychological level beyond which they cannot continue operating,” he added.
S&P regional economist Vincent Conti, meanwhile, emphasized the importance of the government to introduce policies that could tackle the rupiah's depreciation, although it would not be surprising because of the Federal Reserve’s plan to increase the fund rate.
“Even if the rupiah is depreciating, we think that compared to its regional peers, it’s still stable and that shows investor confidence,” said Conti. (bbn)
