Indonesia’s rupiah hit a record low against the US dollar on Thursday, 12 November, weakening to as much as 18,253 per dollar in afternoon trade, AFP reported via Malay Mail. The currency — already Asia’s worst performer this year — fell as traders moved into the dollar on expectations that the US Federal Reserve will raise interest rates into the new year. Indonesia’s central bank intervened to provide support.
The drop came just before the country’s vice-president resigned amid a scandal over his high-school diploma, adding political pressure to a government already facing public dissatisfaction over the economy, corruption concerns and wildfire crises, according to the report.
For anyone holding or planning to move money into rupiah — including property buyers, retirees and remittance senders — the record low plus active central-bank intervention point to a currency under active management rather than one in free fall, but also to continued volatility risk in the near term.
