The Indonesian rupiah fell today on concerns that the nation’s current-account deficit will widen after the government will implement the planned ore export ban.
The Indonesian government wants to process ore domestically and plans to forbid selling it overseas. It may be beneficial to the economy in the long run, but in the short term it will likely lead to an increase of the current account shortage. The rupiah fell on such outlook as well as due to traders’ nervousness ahead of the Federal Reserve policy announcement.
USD/IDR was up from 12,115.00 to 12,155.00 as of 16:54 GMT today, rising as high as 12,181.50 intraday.
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