Rupiah Weakens Today, Fails to Compete with Ringgit and Yen

The rupiah weakened against the US dollar on Monday, failing to keep pace with a broader strengthening among Asian currencies. The local currency depreciated 0.14% to Rp17,960/US, hoveringnearthepsychologicallevelofRp18, 000/US. The decline came amid the shocking news of Perry Warjiyo’s resignation as Governor of Bank Indonesia on Saturday. In contrast, the Thai baht led gains in the region, strengthening 0.39% to THB 33.54/US$. The Malaysian ringgit and Japanese yen both rose 0.20%, while the Singapore dollar, Chinese yuan, and Vietnamese dong also posted gains. The South Korean won suffered the steepest decline, falling 0.54%. The mixed performance occurred as the US dollar index weakened 0.33% to 101.132 ahead of a busy week of central bank meetings, including the Federal Open Market Committee. Markets are pricing in a 36.3% chance of a 25-basis-point rate hike by the Federal Reserve. Global sentiment improved after the US temporarily paused its military campaign against Iran, causing oil prices to drop sharply and boosting investor confidence.