Indonesian Rupiah Nears Record Low as Hawkish Fed Signals Draw Attention

The Indonesian rupiah weakened against the U.S. dollar and approached a record low after U.S. inflation data exceeded expectations and Federal Reserve officials made hawkish remarks. The rupiah fell 0.5% to 18,144 per dollar, according to Sina Finance. The decline followed higher-than-expected October CPI data and hawkish comments from Fed Governor Christopher Waller and Dallas Fed President Lorie K. Logan. The currency was hovering near its record low of 18,190 per dollar. On Tuesday, Indonesia raised planned bond auction issuance to 35 trillion rupiah from an initial target of 30 trillion rupiah. Foreign participation rose to 22.6%, up from 8.5% at the previous auction on October 27, according to a Finance Ministry official. Indonesia’s 10-year government bond yield rose 1 basis point to 7.61%. On November 9, global funds were net buyers of $214 million in Indonesian bonds, according to data from Indonesia’s Ministry of Finance. The Jakarta Composite Index fell 0.1% to 5,121.99 on Tuesday, potentially ending a five-session winning streak. Exchange data showed global investors were net buyers of $9.5 million in Indonesian stocks on Tuesday.