Stability In Sight For Ailing Rupiah

Short-Term Outlook

Given that the Indonesian rupiah is currently trading slightly below our end-2013 forecast of IDR11,700/US$, we are neutral on the unit over the short-term. That said, the scale of the currency's recent sell-off suggests that bearish sentiment towards the rupiah is likely peaking, and with fundamentals gradually improving, this could set the stage for a more constructive environment in 2014.

Core View

Recovery Not Yet Secured
Indonesia - Trade Balance, US$mn

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This article is tagged to:
Sector: Country Risk
Geography: Indonesia

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