Indonesian Rupiah Declines While Trade Deficit Expands

The Indonesian rupiah fell today after the report showed that exports fell, leading to a bigger-than-expected trade balance deficit and declining attractiveness of the currency.

Indonesia’s trade deficit was at $1.3 billion in June, being almost double the predicted amount of $530 million. Exports fell as much as 16.4 percent from a year ago, demonstrating the biggest drop since September 2009. Inflation picked up to 4.56 percent in July, reaching the fastest expansion in 10 months.

USD/IDR rose 0.3 percent to 9,466 today.

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