- Disagreements over the extension of ObamaCare provisions have led to another U.S. government shutdown, weakening the short-term outlook for the U.S. economy.
- The weakening outlook has fuelled expectations of further Fed rate cuts, sending the Rupiah and several other currencies into a relief rally.
- The stabilising Rupiah may tempt Bank Indonesia to adopt a more accommodative stance, although several challenges continue to weigh on the currency.
