Indonesia moves to rescue rupiah....Malaysia?

Posted by optimuss > 2014-12-09 18:30 | Report Abuse

Indonesia moves to rescue rupiah Publish date: Mon, 8 Dec 00:00 INDONESIA central bank said yesterday it is conducting "measured intervention" in foreign exchange markets, after the rupiah fell to its lowest level against the United States dollar since 2008. "We don't do excessive intervention, (we do) measured intervention. We will find a new equilibrium," spokesman Peter Jacobs said. "We are not letting the rupiah depreciate too much." Spot rupiah earlier slid to 12,348 to the dollar, down nearly 0.5 per cent on the day and taking its fall so far this year to 1.6 per cent. The rupiah slid to the weakest level in six years as a contraction in the Japanese economy and slowing Chinese demand clouded the outlook for Indonesia's exports. The rupiah retreated 0.5 per cent to 12,357 per dollar as of 10:08am, prices from local banks show. "Right now the concern is more external, so I'm watching trends in global demand and broad dollar strength," said Gundy Cahyadi, an economist at DBS Group Holdings Ltd in Singapore. Agencies

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2 comment(s). Last comment by fortunebullz 2014-12-09 18:38

optimuss

1,321 posts

Posted by optimuss > 2014-12-09 18:34 | Report Abuse

the thing abt rescue a currency is the more u rescue the lower it goes.

why? bcos the rescue by itself is telling a negative story abt the country. and the rescue itself provided more liquidity for the hedgefund to short. can a single central bank defend the trillions of hedgefund industry globally?

it is like u trying to stop a truck running over by putting a kancil infront to block it.

fortunebullz

2,000 posts

Posted by fortunebullz > 2014-12-09 18:38 | Report Abuse

Malaysia going to doom anyway! With 40% dependence on commodities, will never able to compete with Indonesia or Thailand! How to compete! What advantage Malaysia has against Thailand and Indonesia!

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