The Indonesian rupiah fell today on speculations that the nation’s current-account deficit widened in the past quarter. Political uncertainty in Indonesia was also eroding the appeal of the currency.
Analysts estimated ahead of the official report, which will be released on May 9, that Indonesia’s current-account shortfall increased from 2.2 percent to 2.4 percent of gross domestic product in the first quarter of 2014. It would be a biggest gap since December. Indonesia will hold a presidential election on July 9 and investors are a bit reluctant to bring money into the country until it will become clear who will lead the country and what plans a new government has.
USD/IDR climbed 0.12 percent to 11,562.30 as of 23:13 GMT today.
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