6-11-2024 (JAKARTA) Indonesia’s currency hit a three-month low on Wednesday as Donald Trump’s projected victory in the U.S. presidential election triggered significant market movements, prompting the nation’s central bank to signal its readiness for currency intervention.
The rupiah weakened by 0.7 per cent against the U.S. dollar, touching 15,840 – its lowest level since mid-August – as global markets responded to the American electoral outcome. The sharp decline has placed Bank Indonesia (BI) on high alert, with officials prepared to step in to maintain currency stability.
Fitra Jusdiman, Director at BI’s Monetary and Securities Asset Management Department, attributed the currency’s movement to broader market reactions. “The current market dynamics reflect sentiment surrounding the U.S. election outcome, particularly the indicated Trump victory, which has strengthened the dollar against most global currencies,” he told Reuters.
The development comes at a crucial time for Indonesia’s monetary policy, with BI having maintained steady interest rates during October’s policy meeting. The central bank’s stance has been primarily focused on preserving rupiah stability amid escalating Middle Eastern tensions and domestic inflation concerns.
