Indonesia: Indonesian rupiah continues to struggle
December 12, 2013
The Indonesian rupiah (IDR) traded at 12,015 per USD on 28 November, which was 8.7% weaker than the level registered on the same day of the previous month. The figure marked the IDR's lowest value against the U.S. dollar since March 2009. The rupiah traded at 11,990 per USD on 12 December. On a year-to-date basis, this represents a loss of 24.4% against the dollar.
The currency's downward trend, which began in mid-2011, has been driven by a combination of factors. Devaluation in recent months is being pushed by concerns over the potential impact of the United States tapering its monetary stimulus, along with Indonesia's large current account deficit.
FocusEconomics Consensus Forecast panelists expect the rupiah to trade at 10,054 per USD by the end of this year. For 2014, the panel projects the rupiah to trade at 9,867 per USD.
Author: Carl Kelly, Economist