The Indonesian rupiah declined today on worries that capital inflows into the country may shrink after the US Federal Reserve suggested that its stimulating program may end this year.
The Fed’s hints about an end of quantitative easing worried Forex market participants and that was weakening demand for riskier currencies of emerging markets. Indonesia has its share of problems that hurt the local currency further. The current account deficit was at 2.5 percent of gross domestic product, according the to the analysts’ estimates, as exports were declining for eight straight months.
USD/IDR rose from 9,660 to 9,665 as of 17:54 GMT today, while its daily maximum was at 9,800.0000.
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