JAKARTA (Yosefardi) – The rupiah weakened further 0.3% to Rp13,590 against the US dollar at 2 pm Jakarta time following China’s decision to allow its yuan to fall to three-year lows.
China’s central bank described the move as a “one-off depreciation” of nearly 2%, and said it was based on a new way of managing the exchange rate that better reflected market forces, Reuters reported.
Composite index of the Indonesia Stock Exchange (IDX) also dropped 2% to 4659 as investors weighed the implications of the surprise move of yuan.
Adaro Energy dropped 5.3%, Bank Negara Indonesia lost 4.2%, Charoen Pokphand fell 6.2%, Indocement Tunggal Prakarsa shed 5.4%, BukiT Asam slashed 4.58%, and Semen Indonesia dropped 4.64%.