TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Rupiah drops most in a month
Indonesiaâs rupiah fell the most in a month as the Federal Reserveâs decision to end its stimulus program spurred bets itâs on course to raise interest rates
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
I
ndonesia's rupiah fell the most in a month as the Federal Reserve's decision to end its stimulus program spurred bets it's on course to raise interest rates.
The Fed cited an improving US labor market as it halted bond purchases, known as quantitative easing (QE), that drove fund flows to emerging markets, according to a statement in Washington Wednesday.
'The Fed's decision to end QE shows it remains on track to normalizing its monetary policy,' said Heru Irvansyah, an economist at PT BNI Securities in Jakarta. 'This will cause a shift of funds from emerging markets to the US, which will put some pressure on onshore dollar supply.'
The rupiah dropped 0.6 percent, most since Sept. 29, to 12,149 per dollar as of 9:31 a.m. in Jakarta, prices from local banks show. In the offshore market, one-month non-deliverable forwards lost 0.5 percent to 12,215, 0.5 percent weaker than the onshore spot rate, according to data compiled by Bloomberg.
The nation's 8.375 percent bonds due March 2024 fell for a fourth day, pushing the yield to rise two basis points to 8.13 percent, according to
the Inter Dealer Market Association. That's the highest level since Oct. 17.
