BENGALURU: The Indonesian rupiah advanced on Thursday as results of local elections eased worries about political uncertainty, while the Malaysian ringgit fell after data showed the country’s producer prices continued a downward trend.
Malaysia’s currency, which has been the only gainer among its Southeast Asian peers this year, fell about 0.1% against the dollar for the day, while equities in Kuala Lumpur inched 0.1% lower.
The country’s producer price index (PPI), a metric which measures prices of goods at the producer level, fell by 2.4% October, its steepest decline since June 2023, after easing 2.1% in the last month.
The rupiah added as much as 0.5% against a weaker US dollar, although equities in Jakarta dropped 0.4%.
Candidates backed by new Indonesian President Prabowo Subianto look set to secure victories in key regional elections, with the exception of Jakarta, which analysts said should make it easier to implement and reinforce his political moves and agendas.
“The rupiah is up because of expectations on the election to be settled without significant turbulence,” said Fakhrul Fulvian, economist at Trigmeah Securities.
Earlier this month, Bank Indonesia earlier flagged there was less room for it to further ease interest rates and that it would work to support the rupiah.
“BI’s intervention actions are largely geared towards keeping Indonesian assets attractive for investors and anchor stability,” said Citi analysts.
Meanwhile, the Bank of Korea unexpectedly lowered benchmark interest rates for the second consecutive meeting as the economy stagnated and inflation slowed more than policymakers had anticipated.
Comments
Comments are closed.