Indonesian Rupiah Surpasses Rp 15,000 per US Dollar for the First Time Since the 1998 Crisis

The Indonesian Rupiah exchange rate is now being traded above Rp 15,000 per US dollar. Bloomberg data shows that the Rupiah exchange rate closed at Rp 15,043 per US dollar on Tuesday (October 2nd), down Rp 132 per US dollar (0.88%) from the previous day's closing. This marks the first time the Rupiah has breached the psychological level of Rp 15,000 per US dollar since the 1998 monetary crisis.

On Wednesday (October 3rd), the Rupiah weakened further to Rp 15,088 per US dollar. The price of Brent crude oil reaching US$ 85 per barrel is one of the factors contributing to the Rupiah's fall to its lowest level since July 14, 1998. The rise in global oil prices will increase Indonesia's import costs for fuel oil, resulting in a trade deficit. This is a major concern for market players.

Pressure on the Rupiah is expected to continue. This is reflected in the one-month forward exchange rate, which stands at Rp 15,203 per US dollar, and the three-month forward rate at Rp 15,408 per US dollar. The Jakarta Interbank Spot Dollar Rate (JISDOR) reference rate was Rp 15,088 per US dollar on Wednesday (October 3rd).