The Indonesian rupiah fell today as the nation’s central bank signaled that it encourages weakness of the currency as it should help local exporters and improve the trade balance.
Mirza Adityaswara, Senior Deputy Governor of the Bank Indonesia, said yesterday that the currency should be temporarily âundervaluedâ to improve competitiveness of nationâs exports and reduce imports. This should reduce the trade balance deficit, which was biggest since July. The trade gap, in turn, weighs on the current-account balance.
USD/IDR went up from 11,990 to 12,090 as of 11:54 GMT today, reaching the high of 12,094 intraday.
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