Since Indonesia’s currency has depreciated in recent months, Mr. Rao has had to forgo a larger portion of his income to ensure that his family continues to receive the same amount in Indian rupees.
“I used to get 1 Indian rupee if I paid 181 Indonesian rupiah a few months ago,” he remarked. It costs 195 rupiah to buy one Indian rupee because the rupiah lost value compared to the US dollar and other major currencies.
When the Indonesian market reopened last week following ten days of Idul Fitri holidays, the rupiah fell to a four-year low versus the US dollar, making some people happy and hurting others financially.
When it dropped to 16,200 per US dollar, the central bank of Indonesia intervened to keep the currency strong. The rupiah was valued at 16,257 USD on Friday, April 19, according to Bank Indonesia. It is not the only Asian currency to have declined this year compared to the US dollar.
Last week, the heads of South Korea’s and Japan’s finances voiced worries about the yen’s decline and emerged victorious over the dollar.The yen has lost about 8 percent to the dollar this year, while the won’s slide is about 6 percent.
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