News about rupiah

Jakarta's benchmark index (JKSE) fell more than 5% on October 19 to its lowest level in six years, after plunging 11.6% on October 16, as MSCI considered reclassifying Indonesia from emerging to standalone market status, a move that could cut the country off from international capital flows. The rupiah weakened to 18,048 per USD, close to its record low of 18,190 in June, while the 10-year government bond yield rose to 7.4% from 7.169% on Friday. Goldman Sachs strategists said Indonesia now bears the burden of proof and must show that announced reforms are consistently implemented to avoid reclassification. Moody's and Fitch had earlier this year cut Indonesia's rating outlook to negative, and the central bank is widely expected to hold rates this week, though some analysts raise the possibility of a hike.