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Jakarta Post

Surge in coronavirus infections slows rupiah rise

  • Adrian Wail Akhlas

    The Jakarta Post

Jakarta   /   Sun, December 6, 2020   /  02:40 pm
The Jakarta Post Image
Illustration of the rupiah during the coronavirus pandemic.(JP/Mecca Yumna NP)

The rupiah exchange rate is likely to continue its appreciation trend, but experts say a surge in coronavirus cases and a delay in economic recovery could lead to a significant sell-off in Indonesian assets and hurt the currency. Fitch Solutions expects the rupiah to remain stable over the next three to six months driven by the potential availability of coronavirus vaccines, continued management by Bank Indonesia, as well as anchored real yields because of low inflation. “Even though it is likely the rolling out of the COVID-19 vaccine in Indonesia will take some time, […] we believe the rupiah will nevertheless be supported by the generally improved sentiment that the vaccine is likely to bring globally,” analysts at Fitch Solutions wrote in a note made available to The Jakarta Post on Friday. “The second factor that will help retain rupiah stability is...