(Updates with afternoon trade)
Bank Indonesia leaves key rate unchanged as expected
Rupiah edges up to 16,930 per dollar, Jakarta stocks down 1.5%
Governor Warjiyo said c.bank committed to anchoring rupiah
By Nichiket Sunil
Jan 21 (Reuters) - The Indonesian rupiah rebounded from near record lows on Wednesday after the central bank held its key rate unchanged as expected while remaining consistent with its goal to anchor the currency. The rupiah (IDR=) slightly rose to 16,930 per dollar after the decision, although not far from its all-time low of 16,985 touched in the previous session. Currencies elsewhere in the region held ground, with the Thai baht (THB=TH) trading near 2021-highs on record gold, while the South Korean won (KRW=KFTC) gained after President Lee Jae Myung’s remarks.
The Indian rupee (INR=IN) , however, fell past the 91.50 mark for the first time, as the global equity selloff magnified outflows that pressured the currency.
Bank Indonesia left its benchmark rate (IDCBRR=ECI) unchanged at 4.75% as anticipated, with Governor Perry Warjiyo saying their “current focus” was still on keeping the rupiah stable.
Lavanya Venkateswaran, a senior ASEAN Economist with OCBC said that BI has left room for further rate cuts but the timing will depend on rupiah’s moves. The rupiah, which has already weakened 1.5% in January, has been hit with concerns around its autonomy after President Prabowo Subianto nominated his nephew to join its board of governors, while fiscal deficit worries added to the pressure. “Monetary easing will be opportunistic this year, and likely deferred to the second half, subject to market conditions,” said Radhika Rao, senior economist with DBS Bank. The South Korean won (KRW=KFTC) rose as much as 0.6% to 1,467.7 per dollar, rebounding from a near four-week low of 1,480.0 touched on Tuesday, after Lee said authorities expected the currency to strengthen towards 1,400 in a month or two. The won’s recent weakness has attracted verbal support from the central bank, the government, and even U.S. Treasury Secretary Scott Bessent, who said the currency’s slide was not in line with fundamentals. The equity benchmark KOSPI (.KS11) rebounded to end the day 0.5% higher near all-time highs. President Lee also said that the domestic stock market, which surged 76% last year and is continuing its unprecedented rally with a 16.5% advance so far in January, was still undervalued. In Southeast Asia, the Thai baht (THB=TH) traded near its strongest level since late March 2021, on surging gold prices, which crossed $4,800 an ounce on Wednesday for the first time.
The Malaysian ringgit (MYR=)
edged up
on the day, ahead of Bank Negara Malaysia’s meeting on Thursday, when the central bank is expected to keep its benchmark interest rate unchanged, according to a Reuters poll. Stocks elsewhere in the region pulled back from record highs on heightened trade tensions over U.S. threats to acquire Greenland, which pulled Wall Street down 2% overnight. (MKTS/GLOB) Taiwan’s benchmark stock index (.TWII) ended down 1.6% from a record closing high the previous day.
<h3>HIGHLIGHTS:</h3>
Britain and China to revive ‘Golden Era’ business dialogue during Starmer visit
South Korea court sentences ex-PM Han to 23-year jail term in case related to martial law Indonesia revokes 28 firms’ permits, says violations worsened flood impact
Asia stock indexes and
currencies at 0807 GMT
Japan (JPY=) +0.16 -0.79 &lt;.N225
*
-0.4 4.8
China 

<h3>XS</h3>
*
*
India 

*
*
Indonesia (IDR=) +0.09 -1.54 &lt;.JKSE -1.56 3.99
*
Malaysia (MYR=) +0.00 +0.10 &lt;.KLSE 0.25 1.38
*
Philippines (PHP=) +0.07 -0.81 (.PSI) -0.36 4.58
S.Korea 

<h3>TC</h3>
*
*
Singapore (SGD=) +0.04 +0.20 (.STI) -0.33 3.57
Taiwan 

*
*
Thailand 

*
*

The Indonesian rupiah rebounded from near record lows after Bank Indonesia held its key interest rate at 4.75% as expected. The currency rose to 16,930 per dollar, although it remains close to its all-time low of 16,985. Concerns over the rupiah's autonomy and fiscal deficit pressures continue to affect its stability. Meanwhile, other regional currencies showed mixed performance, with the South Korean won gaining and the Indian rupee falling past 91.50. Analysts suggest that any monetary easing may be deferred to the second half of the year, depending on market conditions.

- Indonesia's central bank maintained its benchmark interest rate at 4.75%, aligning with expectations to stabilize the rupiah.  
- The rupiah appreciated slightly to 16,930 per dollar after previously hitting a low of 16,985, despite concerns regarding the appointment of Prabowo Subianto's nephew to the board.  
- Other regional currencies showed mixed performance, with the Thai baht nearing a two-year high driven by rising gold prices, while the Indian rupee fell below 91.50 amid global market sell-offs.

Reuters

SPDR S&P Em Asia

SPDR S&P Em Mkt Dvd

iShares MSCI Em

Dimensional Emerging Markets Value ETF

iShares MSCI EM Market Asia

iShares Core MSCI EM

SPDR Em Mkt

Avantis Emerging Markets Value ETF

iShares MSCI EM Ex-China

iShares Emerging Markets Equity Factor ETF

Schw Em Mkt

Wisdomtree EM High Dividend Fund

VG Em Mkts

iShares MSCI Emerging Mkts Val Fac ETF

VanEck Indonesia Index ETF

Avantis Emerging Markets Equity ETF

EMERGING MARKETS-Indonesian rupiah bounces from record low after c.bank holds rates as expected