The exchange rate of Indonesian Rupiah against the US Dollar hits a historic low

After opening on the 4th, the exchange rate of the Indonesian rupiah against the US dollar fell below the 1 USD to 18,000 rupiah mark. Subsequently, it further dropped to 1 USD to 18,014.5 rupiah on the morning of local time, setting a new record low. Influenced by factors such as continued tensions in the Middle East driving up commodity prices and a surge in global risk aversion sentiment, the Indonesian rupiah has continued to weaken against the US dollar since the beginning of this year. In the face of sustained pressure on the rupiah, Bank Indonesia stated that it will continue to optimize its policy toolkit, intensify market intervention, maintain ample liquidity in the foreign exchange market, and ensure the stable operation of the financial market. Recently, Bank Indonesia has further tightened policies on US dollar purchases to curb speculative buying and ease depreciation pressure on the rupiah. At the same time, Bank Indonesia is expanding the application scope of its local currency settlement mechanism to reduce reliance on the US dollar and lower exchange rate volatility risks. (Xinhua News Agency)