Indonesia central bank to continue interventions in FX markets to ensure rupiah reflect fundamentals, official says

JAKARTA: Indonesia central bank to continue intervening in the foreign currency markets to ensure the rupiah reflects its fundamentals, a bank official said on Monday after the rupiah had fallen to a fresh one-month low against the US dollar.
The rupiah was down by about 0.5% on the day at 16,460 per dollar as of 0230 GMT, LSEG data showed.
Indonesia central bank to give nearly $5 billion flexibility to banks to manage liquidity
The depreciation occurred as investors sought to avoid riskier assets after the U.S attack on Iran's nuclear sites, Erwin Gunawan Hutapea, head of the monetary department at Bank Indonesia, told Reuters.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Business Recorder

an hour ago

• Business Recorder

Oil prices stable as investors await Iranian response to US strikes

LONDON: Oil prices jumped on Monday to their highest since January as the United States' weekend move to join Israel in attacking Iran's nuclear facilities stoked supply concerns. Brent crude futures were up just 8 cents to $77.09 a barrel as of 0904 GMT. US West Texas Intermediate crude rose by 3 cents to $73.87. Price volatility continued in Monday's session. Both contracts touched fresh five-month highs earlier in the session of $81.40 and $78.40 respectively, before giving up their gains and even turning negative during the European morning session. Brent has risen around 11% since the conflict began on June 13, while WTI has gained approximately 9%. Prices flattened out on Monday as investors weighed the geopolitical risk premium in oil markets without any impact on supply yet from the Middle Eastern crisis. 'The geopolitical risk premium is fading, as so far there has been no supply disruptions. But as it's unclear how the conflict might evolve, market participants are likely to maintain a risk premium for now. So prices are set to stay volatile in the near term,' UBS analyst Giovanni Staunovo said. Prices rose at the open after US President Donald Trump said he had 'obliterated' Iran's main nuclear sites in strikes over the weekend, joining an Israeli assault in an escalation of conflict in the Middle East as Tehran vowed to defend itself. Iran is OPEC's third-largest crude producer. Iran said on Monday that the US attack on its nuclear sites expanded the range of legitimate targets for its armed forces and called US President Donald Trump a 'gambler' for joining Israel's military campaign against the Islamic Republic. Oil prices settle lower The geopolitical risk premium includes fears that an Iranian retaliation may include a closure of the Strait of Hormuz, through which roughly a fifth of global crude supply flows. 'All eyes remain on the Strait of Hormuz … and whether Iran will seek to disrupt tanker traffic,' Saxo Bank analyst Ole Hansen said. Prices could spike in the short term even without full-scale disruption, if the threat of interference alone is enough to delay shipments through the Strait, Hansen added. Goldman Sachs said in a Sunday report that Brent could briefly peak at $110 per barrel if oil flows through the critical waterway were halved for a month, and remain down by 10% for the following 11 months. The bank still assumed no significant disruption to oil and natural gas supply, citing global incentives to try to prevent a sustained and very large disruption. Given the Strait of Hormuz is indispensable for Iran's own oil exports, which are a vital source of its national revenues, a sustained closure would inflict severe economic damage on Iran itself, making it a double-edged sword, said Sugandha Sachdeva, from research firm SS WealthStreet.

Business Recorder

4 hours ago

• Business Recorder

Aluminium outperforms copper on energy cost concerns amid US-Iran tensions

SINGAPORE: Aluminium prices outperformed copper on Monday, with the most-traded contracts on the London and Shanghai exchanges surging, as US strikes on Iranian military sites drove up energy prices — a key cost factor for the energy-intensive metal. The LME three-month aluminium contract rose as much as 3.3% to $2,634.5 per metric ton, before easing to $2,580.50, up 1.22%, by 0101 GMT. Meanwhile, the SHFE most-traded aluminium contract was up 0.54% at 20,525 yuan ($2,859.23) a ton. In comparison, LME copper gained 0.16% to $9,648.5, and SHFE copper was up 0.31% at 78,420 yuan. 'Aluminium is more energy-price sensitive, so it has reacted more strongly to oil prices, and now the key is whether Iran will shut down the Strait of Hormuz,' a Beijing-based metals analyst from a futures company said, requesting anonymity. LME official prices The Strait of Hormuz is crucial for bauxite and alumina shipments in the Middle East, and power accounts for 40% of the total cost in aluminium smelting, he said. US President Donald Trump on Sunday raised the question of regime change in Iran following US strikes against key military sites over the weekend, as senior officials in his administration warned Tehran against retaliation. Brent crude futures were up 2.44% at $78.89 a barrel, as of 1122 GMT, the highest since January. LME zinc contract gained 0.5% to $2,643 a ton, lead inched up 0.1% to $1,994.5, and tin dipped 0.1% to $32,650. SHFE tin gained 1.2% to 263,950 yuan a ton, lead gained 0.4% to 16,925 yuan, and zinc went up 0.3% to 21,980 yuan.

Business Recorder

4 hours ago

• Business Recorder

Indonesia central bank to continue interventions in FX markets to ensure rupiah reflect fundamentals, official says

JAKARTA: Indonesia central bank to continue intervening in the foreign currency markets to ensure the rupiah reflects its fundamentals, a bank official said on Monday after the rupiah had fallen to a fresh one-month low against the US dollar. The rupiah was down by about 0.5% on the day at 16,460 per dollar as of 0230 GMT, LSEG data showed. Indonesia central bank to give nearly $5 billion flexibility to banks to manage liquidity The depreciation occurred as investors sought to avoid riskier assets after the U.S attack on Iran's nuclear sites, Erwin Gunawan Hutapea, head of the monetary department at Bank Indonesia, told Reuters.