The rupiah exchange rate closed at the level of IDR 14,280/USD or slightly weakened 0.04%. This pressure was influenced by the tapering issue, the policy of reducing the value of the Fed’s quantitative easing program. This taper tantrum has the potential to cause capital outflows from emerging markets to return to the US. The US tapering discourse is also supported by the US economic recovery, and the labor market which continues to show strengthening. The SUN market closed mixed yesterday, with yields on FR0087 flat at 6.39%, based on Bloomberg data.
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