Indonesian shoppers flock to Singapore as rupiah surges
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Tourist arrivals will spike this year.
Buoyed by the resurgent rupiah, Indonesian holidaymakers are once again trooping to Singapore to shop and splurge, according to a report by Bloomberg.
The rupiah has surged 9.9 percent against the U.S. dollar over the past six months, second only to Malaysia’s ringgit among emerging markets, as slowing inflation and a nascent commodity-price recovery lured money to the nation’s assets.
“The rupiah has done really well this year and it makes things look cheaper elsewhere for Indonesians,” said Nizam Idris, head of foreign-exchange and fixed-income strategy at Macquarie Bank Ltd. in Singapore. “The currency will find support from decent yields and bottoming commodity prices.
Questions & Answers
Q.Why are Indonesian shoppers travelling to Singapore more frequently?
Why are Indonesian shoppers travelling to Singapore more frequently?
Indonesian shoppers are travelling to Singapore more frequently because the rupiah has surged against the US dollar. This makes goods and services in Singapore appear cheaper for them, encouraging them to shop and spend more.
Q.How much has the rupiah's value increased recently?
How much has the rupiah's value increased recently?
The rupiah has surged by 9.9 percent against the U.S. Dollar over the last six months. This makes it the second-best performing emerging market currency after Malaysia's ringgit during this period.
Q.What factors are contributing to the strength of the Indonesian rupiah?
What factors are contributing to the strength of the Indonesian rupiah?
The rupiah's strength is supported by slowing inflation and a nascent recovery in commodity prices. These conditions have attracted money into Indonesia's assets, helping to bolster the currency's value.
Q.Who provided an expert opinion on the rupiah's performance?
Who provided an expert opinion on the rupiah's performance?
Nizam Idris, head of foreign-exchange and fixed-income strategy at Macquarie Bank Ltd. In Singapore, commented on the rupiah. He stated that its good performance makes shopping elsewhere more affordable for Indonesians.
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