Indonesia’s rupiah rose on Monday, trading near the strongest level in more than three years on speculation the central bank will raise interest rates when it reviews monetary policy next month.
The currency rose for a fifth consecutive day after exchange data showed global funds bought $274 million more Indonesian shares than they sold last week. The rupiah has advanced 1.6 percent since Feb. 4, when Bank Indonesia raised its benchmark reference rate to 6.75 percent from a record-low 6.50 percent after inflation accelerated in January.
“Bank Indonesia is expected to raise interest rates in March by 25 basis points,” said Joanna Tan, a Singapore-based regional economist at Forecast Singapore Pte. “The fund inflows into stocks are also an indication of improved investor sentiment.”
The rupiah appreciated 0.1 percent to 8,848 per dollar as of 3:15 p.m. in Jakarta, according to data compiled by Bloomberg. It touched 8,828, the strongest level since June 2007.
Consumer prices in Southeast Asia’s biggest economy rose 7.02 percent last month from a year earlier after having increased 6.96 percent in December, according to official data.
Government bonds were unchanged, with the yield on the 8.25 percent note due July 2021 at 8.8 percent, the same as at the end of last week, according to midday prices by the Inter-Dealer Market Association.
Overseas funds have increased their holdings of Indonesian government debt to Rp 198 trillion ($22.4 billion) as of Feb. 17, from Rp 195 trillion by the end of January, according to the finance ministry.
The rupiah and Thailand’s baht led gains among Asian currencies on speculation policy makers will tolerate further appreciation as the region’s economies improve and inflationary pressure builds.
Nearly 300 crocodiles were slaughtered in revenge killings by a mob in Indonesia over the weekend. The incident happened shortly after the funeral of a man in his 40s who himself was killed by a crocodile in the Indonesian state of West Papua.
3 years, 2 months ago
Something has washed up on the shore of an Indonesian island. It's huge, it's floating — and it's rotting. A large 15m (49.2 ft) long sea creature was discovered off Hulung Beach, on Seram Island, Indonesia.
4 years, 4 months ago
Nearly 100 people were killed and hundreds injured in Indonesia on Wednesday when a strong earthquake hit its Aceh province and rescuers used earth movers and bare hands to search for survivors in scores of toppled buildings.
4 years, 9 months ago
Indonesia plans to pursue Alphabet Inc's Google for five years of back taxes, and the search giant could face a bill of more than $400 million for 2015 alone if it is found to have avoided payments, a senior tax official said.
5 years ago
Attackers struck in the middle of the day Thursday, in the middle of a busy central Jakarta commercial hub -- killing at least two, wounding 19 and raising alarms about terrorism once more, this time in the world's most populous Muslim country.
5 years, 8 months ago