The rupiah slipped 0.3% to 16,988 per dollar on Tuesday, surpassing a record low from April when it fell below levels seen during the Asian Financial Crisis. Bank Indonesia last week said it was in the market to ensure that the rupiah moves in line with fundamental values. President Prabowo Subianto’s move on Monday to nominate his nephew for a Bank Indonesia deputy governor position has sparked jitters among investors about potential erosion of central bank independence. A cooling domestic economy may force the central bank to resume easing to support growth, risking further pressure on the rupiah. Bank Indonesia is set to announce its first interest-rate decision of the year on Wednesday with all analysts in a Bloomberg survey expecting a hold.
