Rupiah Drops to Four-Month Low as Central Bank Helps Exports
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Indonesia’s rupiah fell to the lowest level since February after the central bank said it will allow weakness in the currency to help exports.
Bank Indonesia is letting the rupiah be temporarily “undervalued” to improve the competitiveness of the nation’s shipments and to reduce imports, Senior Deputy Governor Mirza Adityaswara said in Jakarta yesterday. The trade shortfall widened to $1.96 billion in April, the largest since July last year. That weighs on the current-account deficit, which is set to expand this quarter from the 2.06 percent of gross domestic product recorded in the first three months of the year.