Indonesian rupiah plumbs eight-month low on palm oil export ban

Published 2022년 4월 25일

Tridge summary

Indonesia's rupiah currency hit an eight-month low on April 25, 2022, following a announcement of a palm oil export ban effective April 28. This ban is expected to increase global food costs and is in place until domestic supply stability is achieved. The ban also led to a surge in shares of vegetable oil producers in competing countries. Meanwhile, stock markets in India, Singapore, and South Korea experienced declines due to factors such as potential interest rate hikes by the US Federal Reserve, rising consumer prices, and Covid-19 impacts on retail sales, manufacturing, and exports.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

BENGALURU (April 25): Indonesia's rupiah fell to an eight-month low on Monday and led losses among major Southeast Asian currencies after the country announced a ban on palm oil exports on Friday, sparking a rally in the shares of vegetable oil producers in competing nations. The rupiah weakened 0.7% and was on track for its steepest drop since June 2021. The country's benchmark stock index cut early losses and was last down 0.1%, with some of the country's top palm oil companies trading sharply lower. Indonesia's ban on palm oil exports, which will take effect on April 28, "will likely push up global food costs and will last until the... government deems domestic supply as stable", analysts at ING wrote. The country's exports of palm oil and its derivatives are worth US$3 billion a month, according to estimates by some analysts. Malaysian palm oil futures jumped to their highest since early March, sending shares of the companies focussed on the vegetable oil sharply higher. ...

Source: Theedgemarkets