Indonesia central bank says the rupiah’s fall against the dollar is ’temporary’

Indonesia’s central bank said on Monday that the rupiah’s depreciation against the dollar is “temporary”, stemming from investors repositioning money ahead of the Federal Open Market Committee (FOMC) meeting on Dec. 16-17.

“This is temporary because in the money market, investors are repositioning their investment in relation to the FOMC meeting” which could produce a statement that sounds “hawkish” about Fed plans to hike interest rates, Mirza Adityaswara, senior deputy governor of Bank Indonesia, told Reuters.
The rupiah on Monday hit a 16-year low, in part because of year-end corporate demand for dollars.
In Jakarta, the rupiah ended at 12,695 to the dollar, a 1.7 percent weakening for the day.