The Indonesian rupiah edged down on Wednesday after an official with the central bank said intervention with the currency will help exports, according to Bloomberg.
Monetary weakness will drive competition and slash imports, senior deputy governor Mirza Adityaswara with the central bank said. Indonesia is set to elect a new president early next month, and the aspirations of frontrunner Joko Widodo could be waning and weighing on the performance of the monetary unit, according to Reuters. The election is scheduled for July 9.
"Given that market has broadly positioned for a Jokowi presidency, the immediate knee-jerk reaction to that potential result could well be rather adverse, compounded by record-high foreign ownership of sovereign bonds," states a Wednesday note authored by economist Wellian Wiranto with OCBC Bank in Singapore, according to Reuters.
The Indonesian rupiah fell roughly 0.8 percent against the greenback on Wednesday. The rupiah dropped to its lowest level since mid February earlier during the trade session.
In April, Indonesia's trade shortfall widened to the equivalent of $1.96 billion, touching the biggest gap since July of last year, according to Bloomberg.
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