Weakening IDR

[fastpitch17]

Since Biden saw fit to give his son an unconditonal blanket pardon for ANY activities or involvement in any activities for a 10 year period, we are just witnessing the begining of a race to the bottom. And the democrats claim it is the republicans who want to circumvent the law. Pot meet kettle.

I see the beginning of the race to the bottom as started a couple or more decades ago. One can eliminate any previous presidential figure and just look at the Congress and Senate circus that were created many years ago.

 

[Bob]

I see the beginning of the race to the bottom as started a couple or more decades ago. One can eliminate any previous presidential figure and just look at the Congress and Senate circus that were created many years ago.

Reagan. That's when transferring public wealth to donors, and Congressmen being in it mainly for the grift, really started getting out of control.
The Rupiah was 667 to the USD in his first term (trying to keep it on topic).

 

[Helpful Herbert]

Bank Indonesia has just surprisingly cut interest rates, and the rupiah has now weakened again, to 16,350\$. Pretty sure it will continue to weaken. The all time low is 16,564, which was at the beginning of COVID.

 

[Helpful Herbert]

Following Trump's "brave" decision to attack his allies with sanctions, the IDR is weakening again. Now it just reached 16,490. Shouldn't be too long until the all time low is breached.

 

[centurion]

Following Trump's "brave" decision to attack his allies with sanctions, the IDR is weakening again. Now it just reached 16,490. Shouldn't be too long until the all time low is breached.

Indonesia is on the list with highest US trade deficits (16-23 billion), so expected some twisting arms soon.

 

[nd_eric_77]

Indonesia is on the list with highest US trade deficits (16-23 billion), so expected some twisting arms soon.

Hopefully, the US will force Indonesia to lower its tariffs on US products in exchange for the US to lower its tariffs on Indonesian products.

 

[centurion]

Hopefully, the US will force Indonesia to lower its tariffs on US products in exchange for the US to lower its tariffs on Indonesian products.

Indonesia is using tariff and non-tariff barriers quite extensively. Now will be on the other side of the stick for change.

Trump will probably ask to buy more US products to lower the deficit.

 

[Helpful Herbert]

Imagine if Trump tries to force them to open more Starbucks and KFC

 

[fastpitch17]

Hopefully, the US will force Indonesia to lower its tariffs on US products in exchange for the US to lower its tariffs on Indonesian products.

I believe I read that Prabowo is meeting with trump.

 

[Shadrach]

Imagine if Trump tries to force them to open more Starbucks and KFC

From what I've seen, they don't have too. The people here love them already!

 

[Shadrach]

I believe I read that Prabowo is meeting with trump.

Now that would be funny! Maybe give Don-Old some of Obama's favorite Bakso Ayam! And lots of chilies in there, to give him a good case of Bali Belly!

 

[Helpful Herbert]

Just fell through the all time low: 16575\$.
I'm guessing it is going to continue to fall given the current policies of the government.

 

[nd_eric_77]

Just fell through the all time low: 16575\$.
I'm guessing it is going to continue to fall given the current policies of the government.

On the day when I make my monthly transfer, no less

 

[Helpful Herbert]

Just went through 17,000\$ ! And that's when the dollar is weakened.
Things are about to get interesting...

 

[Balifrog]

Euro / Idr at a 5 year record !

Good for my pension, not good for the imported stuff I buy (butter,cream, cheese...)

 

[fastpitch17]

BI announced as of Tuesday when the markets open they are going to attack the currency loss very aggressively. I believe they have said similar in the past and the Rupiah only fell more.

 

[Balifrog]

BI announced as of Tuesday when the markets open they are going to attack the currency loss very aggressively. I believe they have said similar in the past and the Rupiah only fell more.

The only way they can do this is by selling USD from the B.I. reserves and buying rupees.
LImited option as they can not lower the reserves too much.

 

[pantaiema]

People often mention that the IDR exchange rate fluctuates, up and down against major currencies. While that’s true in the short term, over the long run, the trend is clear it has been consistently upward. Just look at historical data on this graph.

Then there's the elephant in the room: the IDR Re-denomination. No one knows when it will happen, but eventually, someone will have to pull the trigger. Broadly speaking, this could put significant pressure on the currency and potentially lead to hyperinflation, especially for a country which has not been backed up by a solid plan and sufficient resources to mitigate this risk..

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[Balifrog]

People often mention that the IDR exchange rate fluctuates, up and down against major currencies. While that’s true in the short term, over the long run, the trend is clear it has been consistently upward. Just look at historical data on this graph.

Then there's the elephant in the room: the IDR Re-denomination. No one knows when it will happen, but eventually, someone will have to pull the trigger. Broadly speaking, this could put significant pressure on the currency and potentially lead to hyperinflation, especially for a country which has not been backed up by a solid plan and sufficient resources to mitigate this risk..

View attachment 4788

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Wait,wait...
The chart is USD vs IDR, and shows the IDR is on a long DOWNWARD trend to the USD.

The USD vs a basket of currencies being at about the same level than 50 years ago.

 

[pantaiema]

Wait,wait...
The chart is USD vs IDR, and shows the IDR is on a long DOWNWARD trend to the USD.

The USD vs a basket of currencies being at about the same level than 50 years ago.

View attachment 4789

View attachment 4790

DXY Weighing

• Euro - 57.6% weight
• Japanese yen - 13.6%
• Pound sterling - 11.9%
• Canadian dollar - 9.1%
• Swedish krona - 4.2%
• Swiss franc - 3.6%

The DXY Index measures the value of the USD against a basket of six major currencies, with the Euro having the largest weight (around 57.6%). So it is nothing to do with Indonesian Rupiah (IDR).

Looking at the DXY index, if you draw a horizontal line at the 100 level, you'll see that the index has spent more time below that mark than above it. This suggests that, although the USD's value against this basket of six currencies has fluctuated around the 100 level, it has generally been weaker than the 100 baseline over time, indicating more frequent periods of relative weakness in the U.S. dollar.