Indonesia rupiah drops to record low on strong US dollar, MSCI woes

Résumé détaillé

Indonesia rupiah hits record low on a stronger dollar and MSCI index removal concerns. Read more at straitstimes.com.

The rupiah weakened as much as 0.3% to 18,204 per US dollar on Nov 12, falling past the previous record low of 18,190 seen in early June.

JAKARTA – The Indonesian rupiah fell to an all-time low as a stronger US dollar and the risk of MSCI, removing the nation’s stocks from its emerging-market indexes cast a pall over Asia’s worst-performing currency.

The rupiah weakened as much as 0.3% to 18,204 per US dollar on Nov 12, falling past the previous record low of 18,190 seen in early June. The Jakarta Composite Index of shares rose 0.8%, while the 10-year bond yield was steady at 7.62%.

The rupiah has come under renewed pressure as the dollar strengthened overnight on expectations that the Federal Reserve would resume raising interest rates in December. At the same time, investor sentiment is fragile after MSCI in October unveiled a proposal to reclassify Indonesia as a standalone market, citing persistent investability concerns.

Goldman Sachs Group estimated about US$5.6 billion (S$7.2 billion) of passive outflows in such an event, as it would effectively remove the country’s stocks from MSCI’s indexes.

Ten-year bond yields climbed to a six-year high and the benchmark equity index plummeted to its lowest since 2020 earlier in November.

MSCI’s warning has compounded a host of concerns already weighing on Indonesian assets, including policy uncertainty and the risk of a sovereign rating downgrade. Persistently high oil prices are also driving up government subsidy costs and putting pressure on public finances.

Down more than 8% against the US dollar in 2026, the rupiah is the worst performer in Asia.

Bank Indonesia has said it remains vigilant about market developments and is monitoring capital outflows following the MSCI announcement. BLOOMBERG

Début de l'article, extrait de The Straits Times Business. Pour lire la suite, ouvrez l'article chez le média.