Indonesian Rupiah Indonesia’s currency, the rupiah, may become Asia’s best-performing currency for the rest of the year, as rising commodity prices pushed the country’s trade surplus to a record high of 4.74 billion U.S. dollars in August. According to statistics, the surplus has reached the peng surplus for the 16th time in a row. Bo news. As the world recovers from the Covid-19 pandemic, supply chain disruptions and geopolitical tensions have led to a global energy crisis, coal and palm oil exporting countries are benefiting. The Indonesian rupiah rose by 1.3% in the third quarter of 2021, despite the fact that Asian competitors…
As rising commodity prices pushed the country’s trade surplus to a record high of US$4.74 billion in August, Indonesia’s currency, the rupiah, may become Asia’s best-performing currency for the rest of the year.day Continuous, according to Bloomberg News.
As the world recovers from the Covid-19 pandemic, supply chain disruptions and geopolitical tensions have led to a global energy crisis, coal and palm oil exporting countries are benefiting.
Although Asian competitors weakened due to rising U.S. Treasury yields, the Indonesian rupiah rose by 1.3% in the third quarter of 2021. As the country’s foreign exchange reserves hit a record high, if the U.S. yields rise further in the next few months, Bank Indonesia has enough ammunition to support the currency.
However, after reaching the summit in the three months ending in September, there is a threat to the Indonesian rupiah to maintain or approach the highest position of the Asian Leadership Council this quarter. Despite all the bullish momentum that may limit further gains, the currency failed to break the 14,200 technical resistance against the US dollar last month.
The Thai baht and the peso face huge resistance
However, many regional competitors of the Indonesian rupiah are facing greater resistance. The Thai baht has been dragged down by the slowing economy in Thailand and the expanding current account deficit, and the Philippine Central Bank has hinted that the peso may weaken further this quarter.
At the same time, if the Monetary Authority of Singapore maintains its policy parameters unchanged in the upcoming review of monetary policy, the upside of the Singapore dollar may be limited by broad expectations.
The Malaysian currency ringgit is an outlier that can surpass the Indonesian rupiah. The high vaccination rates that have enabled the authorities to remove pandemic restrictions and soaring oil prices are boosting Malaysia’s growth and recovery.
