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View all search resultsThe dollar held firm near a one-week high on Thursday on a Reuters report that the United States had carried out new strikes in Iran targeting a military site, while the yen softened towards a level that triggered central bank intervention last month.
Rather than attempt to downplay the rupiah's slide through well-meaning but ultimately misleading political statements that inevitably dismiss the plight of rural communities, realpolitik based on honesty backed by data is the best policy approach.
The rupiah recently plunged to an all-time low of Rp 17,514 per United States dollar, and pressure on the currency may intensify in the second quarter as Indonesia faces a convergence of external and domestic challenges. Maturing government debt, dividend repatriation by foreign investors and soaring oil prices are tightening dollar liquidity, while the latest MSCI Indonesia rebalancing threatens further capital outflows.
Japan and the US reaffirmed their close cooperation in dealing with exchange rate moves, including on currency intervention, Japanese Finance Minister Satsuki Katayama told reporters after a meeting in Tokyo with her US counterpart, Scott Bessent, on Tuesday.
The rupiah was the worst-performing currency in the region, depreciating 0.61 percent by market close, followed by the Philippine peso and the Thai baht, which weakened by 0.6 percent and 0.55 percent, respectively.
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