US Dollar Surge: BI Governor Reveals the Cause!
DollarS Surge Impacts Global Currencies, But Rupiah Holds strong
Jakarta – While the U.S. dollar continues its surge against global currencies, Indonesia’s rupiah remains relatively resilient, according to Bank Indonesia (BI) Governor Perry Warjiyo.
The rupiah is currently hovering near Rp 16,000 per US dollar, reflecting the broader trend of a strengthening greenback.
“It’s true that all countries are experiencing depreciation, but the rupiah’s depreciation is among the smallest,” Warjiyo stated during a seminar in Jakarta on Saturday.
This trend, Warjiyo explained, is linked to the aftermath of donald Trump’s victory in the U.S. presidential election. The U.S. has issued important amounts of government debt, increasing its fiscal deficit to 7.7%. This has prompted many investors to shift their portfolios towards the American market, a phenomenon known as ”capital reversal.”
“The U.S. government debt is very high, and therefore the world is moving its investment portfolios to America,” Warjiyo elaborated.
This influx of capital, coupled with high interest rates, has fueled the dollar’s strength.The U.S.dollar index has risen from 101 to 107 since Trump’s election.
“as of the large debt and high interest rates, the dollar is currently super strong,” Warjiyo said. “The dollar, before Trump was elected, was at 101 compared to other developed countries. Now it’s at 107.”
Warjiyo emphasized that this trend is impacting all countries and is expected to continue for the duration of Trump’s presidency.
Rupiah Stands Strong Despite Global Dollar Surge
Jakarta – despite the U.S. dollar surging against global currencies, Indonesia’s rupiah has remained relatively resilient, according to Bank indonesia (BI) Governor Perry Warjiyo.
Currently hovering near Rp 16,000 per US dollar, the rupiah’s depreciation is among the smallest globally, Warjiyo stated during a seminar in Jakarta on Saturday.
He attributed this trend to the aftermath of donald Trump’s victory in the U.S. presidential election, which led to a notable increase in U.S. government debt and fiscal deficit, reaching 7.7%.
This has caused investors to shift their portfolios towards the American market,a phenomenon known as “capital reversal.”
“The U.S. government debt is very high, and therefore the world is moving its investment portfolios to America,” Warjiyo elaborate.
The influx of capital, combined with high interest rates, has fueled the dollar’s strength. The U.S. dollar index has risen from 101 to 107 since Trump’s election.
“as of the large debt and high interest rates, the dollar is currently super strong,” Warjiyo said. “The dollar, before Trump was elected, was at 101 compared to other developed countries. Now it’s at 107.”
Warjiyo emphasized that this trend is impacting all countries and is expected to continue for the duration of Trump’s presidency.