In Reply to: AUD rate posted by JellyB on Thursday, 25. August 2005 at 18:25 Bali Time:
It's actually been dropping for more than a year, but most of the movement has been kept invisible because the Indo Reserve Bank has been reacting to each drop against the $US by selling their foreign currency stocks. The problem is, they are now running low on foreign currency, since oil prices have gone through the roof right at the point where Indonesia has become a net importer of oil for the first time in decades.
At the moment they're trying to prop up the rupiah with wishful thinking, but since the $US is having a slight resurgence after steadily dropping for so long, things are looking bleak for the Rp.
So it's a good time to spend spend spend in Bali. They definitely need it.
I wouldn't be surprised if the AU/Rp exchange rate drops back down again within a couple of days, though. They still have some $US to spend, and they'll be keen to keep up appearances. But it won't make much difference in the longer term unless some real changes occur.