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View all search resultsBank Indonesia (BI) has increased the benchmark interest rate outside the routine schedule to shore up the rupiah after a hefty hike at the last Board of Governors' meeting and other measures failed to arrest the currency’s depreciation.
The rupiah slid to a new record low of Rp 18,000 per United States dollar on Thursday, extending its losses this year to more than 7 percent and making it Asia’s worst-performing currency as rising oil prices and deteriorating trade dynamics rattled investors.
Incoming Federal Reserve chair Kevin Warsh will be sworn in at the White House on Friday, taking the reins of the US central bank as it faces unprecedented pressure from President Donald Trump to cut interest rates.
The rupiah's persistent depreciation is a structural consequence of over-reliance on volatile capital inflows to finance a chronic current account deficit, persistent saving–investment imbalances, lasting fiscal deficit and a narrow, commodity-dependent export base.
Federal Reserve Chair Jerome Powell closed out eight years as head of the US central bank on Wednesday with interest rates on hold, rising concern about inflation, and an announcement that he would stay on as a Fed governor for now to defend the agency's independence from Trump administration "battering."
Euro zone bond yields hit multi-week highs on Tuesday after a survey showed euro zone consumers expecting higher inflation, prompting markets to raise the likelihood of a hike in interest rates by the European Central Bank in the coming months.
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