The rupiah weakened 0.46% to Rp18,021 per US dollar at the open after MSCI proposed reclassifying Indonesia from Emerging Market to Standalone Market status. Market feedback is open until 30 April 2027, with a final decision expected before 30 June 2027.
MSCI cited ongoing market-functioning concerns, including suspected coordinated trading.
A possible downgrade could trigger passive fund outflows from Indonesian equities and weigh on the rupiah, raising the cost of dollar-priced imported feed inputs.
Not enough comparable past events yet for a historical read.
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