Indonesia rupiah opens at all-time low, South Korean won slides to 2009 levels


File pic. - AFP

The Indonesian rupiah slid to a record low on Friday on investor worries over the country's persistently weak fundamentals, while the South Korean won extended its losing run to a fifth session and traded near its weakest level in 15 years.

The rupiah opened at an all-time low of 18,050 against the dollar, but was last seen at 18,025 with a weekly loss of nearly 1%.

It crossed the key 18,000 level on Thursday and is set to mark its 10th consecutive week of declines. The rupiah has lost more than 7% of its value so far this year.

Indonesia's Jakarta Composite Index fell for the third straight session, shedding 1.5% as Southeast Asia's biggest economy faces declining investor confidence over fiscal concerns, equity market governance issues highlighted by an MSCI review, risks to central bank autonomy and a shifting commodity export policy.

Meanwhile, the South Korean won slid more than 1% to 1,549.10 a dollar, a level previously seen in March, 2009.

The won's sustained weakness has prompted the central bank to signal an imminent pivot toward a more restrictive policy stance to curb inflation, while South Korea's finance minister has vowed measures to rein in excessive volatility.

Elsewhere, Philippine shares rose 1.3% after data showed that inflation slowed in May, largely driven by a slower increase in food prices.

HIGHLIGHTS:

** A new US tariff that was lower than earlier proposals and expected exemptions for some of Indonesia's key products will provide growth stimulus for the economy, minister says

** South Korea labour minister calls on tech firms to share excess AI profits with suppliers, staff - Reuters

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