Rupiah exchange rate experiences increased pressure in line with other regional currencies
JAKARTA - The Rupiah exchange rate is under increasing pressure in line with other regional currencies, in line with increasing uncertainty in global financial markets. The exchange rate on June 22, 2022 depreciated 1.93% (ptp) compared to the end of May 2022.
The depreciation was in line with increasing uncertainty in global financial markets due to more aggressive monetary policy tightening in various countries in response to rising inflationary pressures and concerns about a global economic slowdown. Meanwhile, the supply of domestic foreign currency was maintained and perceptions of the outlook for the Indonesian economy remained positive.
With this development, the Rupiah exchange rate up to 22 June 2022 depreciated around 4.14% (ytd) compared to the level at the end of 2021, relatively better than the depreciation of currencies of a number of other developing countries, such as India 5.17%, Malaysia 5, 44%, and Thailand 5.84%.
Going forward, Bank Indonesia will continue to monitor developments in the supply of foreign currency and strengthen the rupiah exchange rate stabilization policy in accordance with the operation of market mechanisms and its fundamental values to support efforts to control inflation and macroeconomic stability. (LM)