The Indonesian rupiah weakened to a new low after global oil prices surged due to tensions in the Middle East, adding pressure on the country's economy, government budget, and financial stability.
On May 18, 2569 at 09.07:XNUMX a.m., Bloomberg News reported that The Indonesian rupiah weakened to a new all-time low. Following a rise in global oil prices, domestic financial markets reopened after a two-day holiday.
Rupiah value The rupiah depreciated by 0.9% to 17,630 rupiah per US dollar, making it the weakest currency in Asia and having weakened by more than 5% since the beginning of the year.
This situation adds pressure on Indonesia's central bank to quickly implement measures to support its currency, as Indonesia is seen as one of the Asian countries most vulnerable to soaring oil prices stemming from the war in the Middle East.
Higher oil prices also risk increasing the government's energy subsidy burden and potentially widening the country's budget deficit. Previously, both Fitch Ratings and Moody's Ratings had downgraded Indonesia's credit rating outlook to "negative" this year.
meanwhile The Indonesian stock market fell 2.6% on Monday, continuing the decline from Wednesday. Following MSCI Inc.'s announcement of removing several companies from its index, citing overly concentrated ownership structures as the reason.
refer : www.bloomberg.com
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