UBS’s Nizam Says Tolerance of Inflation a Rupiah Risk

Nizam Idris, a Singapore-based currency strategist at UBS AG, the world’s second-largest foreign-exchange trader, comments on the impact of inflation on Indonesia’s rupiah.

“We expect the rupiah to appreciate 4.5 percent next year, but this year is a harder call. The risk with the rupiah is more short-term rather than long-term, emanating primarily from inflation and the way Bank Indonesia handles it. Once you’ve passed the inflation issue toward the end of this year, then we see clearer appreciation.