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Rupiah falls most in 2 weeks on CAD concern
The rupiah fell the most in more than two weeks after Bank Indonesia (BI) said the current-account deficit (CAD) probably widened to near a record last quarter
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he rupiah fell the most in more than two weeks after Bank Indonesia (BI) said the current-account deficit (CAD) probably widened to near a record last quarter.
The shortfall was around 4 percent of gross domestic product in the three months through June, BI Deputy Governor Perry Warjiyo said July 11. That compares with 2.06 percent in the first quarter and an unprecedented 4.4 percent in the second quarter of 2013.
The currency dropped 0.6 percent to close at 11,665 per dollar, the biggest drop since June 25, prices from local banks show. In the offshore market, one-month non-deliverable forwards fell 0.5 percent to 11,724, 0.5 percent weaker than the onshore spot rate, according to data compiled by Bloomberg.
'Considering the current-account deficit, the rupiah should remain under pressure,' said Josua Pardede, an economist at PT Bank Permata in Jakarta. 'The election rally was capped as both candidates claimed victory, but the rupiah could strengthen once the final results are announced and accepted by the people.'
The official vote tally is due by July 22. Any subsequent challenge at the Constitutional Court will be ruled on by late August.
