Indonesia central bank sees pressure on rupiah in March-June

25 Mar, 2015

JAKARTA: Indonesia's central bank expects the rupiah to remain under pressure through June this year as dollar demand rises for dividend payments, Bank Indonesia Governor told parliament on Wednesday.

The rupiah fell to its lowest level in 17 years last week at 13,245 per dollar. Though it has since recovered some ground to trade at 12,960 on Wednesday, it has still lost more than 4 percent against the greenback so far this year.

Subsidiaries of multinational companies in Indonesia usually send back dividends to their parent companies in the second quarter.

Copyright Reuters, 2015

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