Rupiah’s new-found volatility isn’t what traders are hoping for

Bank Indonesia (BI), the nation

KUALA LUMPUR: The rupiah’s volatility has gone through the roof in recent weeks – but then again, maybe it hasn’t.

While the rupiah has tumbled along with most other emerging-market currencies this year, traders say the recent spike in volatility isn’t as real as it looks. What has happened is that there’s an avalanche of sellers but very few parties wishing to take the other side apart from the central bank.