The Indonesian Rupiah Exchange Rate is Approaching Rp 14,000 per US Dollar.

The appreciation of the US dollar against major world currencies has weakened Asian currencies. This strengthening of the US dollar has caused the Indonesian rupiah to plummet, nearing the Rp 14,000/US dollar level. According to Bloomberg data, the rupiah exchange rate on Monday (April 23rd) at 12:10 WIB was traded at Rp 13,911/US dollar, weakening by 0.13% from the previous weekend's closing. This weakening is the deepest since January 22, 2016.

Moody's Investor Service's upgrade of Indonesia's debt rating to Baa2 from Baa3 has failed to support the strengthening of the rupiah. The credit default swap (CDS) for government bonds in US dollars actually rose to 168.52 from 166.5 on Friday (April 13th). The rupiah exchange rate in the Non-Deliverable Forward (NDF) market for the next three months has even been traded at Rp 14,091/US dollar.

The expected release of improved US economic data and the possibility of a US Federal Reserve (The Fed) interest rate hike have made the US dollar strong again against major world currencies. The US dollar index (DXY) in Asian trading on Monday (April 23rd) was traded at 90.39, up from its April 16th level.