00:00Indonesia's rupiah has hit a record low today, as fears of a rising inflation and surging oil prices triggered a
00:07wider market sell-off globally.
00:09The rupiah dropped as much as 1.2% to $17,669, the worst performer in the region.
00:18Indonesian equities also plunged nearly 5% to their lowest level in more than a year.
00:24The sell-off reflects growing concern across Asian economies heavily reliant on energy imports as the war in Iran drives
00:32oil prices higher.
00:33Investors are also worried about Indonesia's rising energy subsidy costs and widening fiscal pressures.
00:41Indonesia's central bank has pledged to intervene in currency markets and use all available monetary tools to support the rupiah,
00:48which has weakened more than 5% this year.
00:50But President Prabowo Subianto over the weekend downplayed concerns over the currency slide, saying villagers do not use U.S.
00:58dollars in their daily lives.
01:00Even before the Iran conflict, investor confidence had already been shaken by concerns over government spending plans, market transparency and
01:08central bank independence.
01:10Fitch and Moody's have both downgraded Indonesia's credit outlook to negative this year.
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