Indonesia's central bank sees rupiah trading at 13,700-13,900 per dollar on average in 2016

Indonesia's rupiah currency is expected to trade at an average of between 13,700 and 13,900 per dollar in 2016, the central bank governor told parliament on Tuesday. 

PHOTO: BLOOMBERG

SEP 22, 201510:55 PM

[JAKARTA] Indonesia's rupiah currency is expected to trade at an average of between 13,700 and 13,900 per dollar in 2016, the central bank governor told parliament on Tuesday.

Bank Indonesia Governor Agus Martowardojo told a budget hearing that the currency would remain under pressure this year but that it would recover afterwards.

"The market perception will improve caused by the government's deregulation package and BI's stabilisation policy," Mr Martowardojo said.

The central bank governor predicted a rupiah exchange rate of around 14,000 per dollar in the fourth quarter of 2015 and the first quarter of 2016.

"In the second half of 2016, the perception of Indonesia will improve," he said.

The rupiah dropped to a 17-year low of 14,500 to the dollar on Tuesday and is the worst performing currency in the region this year after Malaysia's ringgit.

REUTERS