Indonesia’s Surprise Rate Cut May Spur Inflows, Support Rupiah
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Bank Indonesia’s surprise interest-rate cut may lead to higher foreign inflows into bonds and stocks, which may end up supporting the rupiah, according to analysts.
A potentially weaker dollar on the back of a start of interest-rate cuts by the Federal Reserve may also aid emerging-market currencies, including the rupiah. The currency erased intraday losses on Wednesday to close little changed at 15,340 per dollar.