# MSCI Turns Out to Have Little Impact; Here’s the Main Factor Weakening the Rupiah

> Bank Danamon chief economist Irman Faiz said geopolitical conditions are a more fundamental influence on the rupiah than MSCI’s consideration of changing Indonesia’s market status. The MSCI-related stock selloff prompted foreign equity outflows, but Faiz said these flows do not fundamentally explain the currency’s weakness.

- Date: 2026-11-07 · published 2026-11-07T12:11:06.381Z
- Category: macro · region Indonesia · magnitude low
- Page: https://feedsoft.ai/events/85912-msci-turns-out-to-have-little-impact-here-s-the-main-factor-weakening-the-rupiah
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Worsening geopolitical risk can prompt foreign investors to withdraw from Indonesian assets, putting downward pressure on the rupiah and upward pressure on USD/IDR.

## Read by commodity

- USDBRL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2021-03-12 | [FX Daily: Brazilian central bank’s line in the sand \| ING THINK](https://feedsoft.ai/events/48310-fx-daily-brazilian-central-bank-s-line-in-the-sand-ing-think.md) | -0.3% | +0.4% |
| USDBRL | 2024-01-29 | [One more cut from Brazil and the Selic is ‘neutral’ \| opinions \| ING THINK](https://feedsoft.ai/events/32325-one-more-cut-from-brazil-and-the-selic-is-neutral-opinions-ing-think.md) | +1.1% | +1.5% |
| USDBRL | 2021-02-26 | [Brazil intervenes in FX markets to arrest real's fall — Octa](https://feedsoft.ai/events/48851-brazil-intervenes-in-fx-markets-to-arrest-real-s-fall-octa.md) | +1.4% | +2.6% |
| USDBRL | 2023-08-30 | [EMERGING MARKETS-Latin American currencies up on weaker dollar; Brazil's real lags on rate-cut speculation](https://feedsoft.ai/events/34788-emerging-markets-latin-american-currencies-up-on-weaker-dollar-brazil-s-real.md) | +2.3% | +4.1% |
| USDBRL | 2023-12-08 | [EMERGING MARKETS-Colombian peso up after inflation data; Latam FX, stocks slip on the week](https://feedsoft.ai/events/32984-emerging-markets-colombian-peso-up-after-inflation-data-latam-fx-stocks-slip-on.md) | -0.1% | -0.6% |

## Sources

- cnbcindonesia.com: https://www.cnbcindonesia.com/market/20261107131801-17-783178/ternyata-msci-tak-ngefek-banyak-ini-musuh-utama-bikin-rupiah-melemah

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.