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Bank Indonesia raised its benchmark rate 25 basis points to 5.75% on September 27, its fifth hike since mid-May, hours after the Federal Reserve's third hike this year. It also introduced an instrument to encourage foreign investors to hedge currency onshore to support the rupiah, which has fallen about 9% against the dollar this year.
Rupiah weakness and tighter Indonesian monetary policy raise the cost of imported feed inputs and pressure local feed margins, while a weaker rupiah can make Indonesian palm oil and other exports cheaper in dollar terms.
jakartaglobe.idGayatri Suroyo, Nilufar RizkiSep 27, 2018Not enough comparable past events yet for a historical read.
After 86 past neutral macro events, Palm Oil moved a median +0.3% over 5 sessions (56% higher; middle half -1.6% to +2.0%), and +1.0% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
