Indonesian Rupiah Stable After Central Bank Raises Interest Rates

The Indonesian rupiah rose a bit against the US dollar today after Indonesia’s central bank raised interest rates to stop the drop of the currency.
The Bank Indonesia announced that it is increasing its interest rates, including the benchmark 7-Day Reverse Repo Rate, which was hiked by 25 basis points to 5.5%. The action was a response to the recent drop of the rupiah to the lowest level in three years as the Turkish crisis hurt currencies of emerging markets. The Indonesian government is also planning import-curbing measures to prevent currency’s slide, including tariffs of 7.5% on consumer goods.
USD/IDR slipped a bit by 0.05% to 14,576.5 as of 19:11 GMT today.

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