NEW YORK, November 6 -- The Indonesian rupiah rose the most since June 2016, as one of the most battered emerging markets in Asia started to show signs of revival. The currency jumped as much as 1.3 percent to 14,790 against the dollar, extending a recovery first seen last week when optimism over a potential U.S.-China trade deal lifted developing markets. The 10-year bond yield fell by 13 basis points. “There’s a strong buying spree among foreign investors for Indonesian bonds and stocks, with many apparently realizing that the domestic fundamentals are more resilient than anticipated, particularly on government bonds,” said Satria Sambijantoro, an economist at PT Bahana Sekuritas in Jakarta. The rupiah is also being aided by expectations that foreign-exchange reserves rose in October before the data due Wednesday, he said. Foreign funds have been snapping up Indonesian assets in recent weeks as faster-than-forecast growth and relatively benign inflation of about 3 percent bolstered demand. The rupiah has also been shored up by the introduction of a domestic market for non-deliverable forwards, which is aimed at reducing dollar demand in the offshore NDF market and deterring hoarding of the U.S. currency.
The benchmark 10-year bond yield dropped 35 basis points last week, the biggest decline since June, while the rupiah is up 2.8 percent for the month, the best performance in Asia. Indonesia reported economic growth of more than 5 percent for a seventh straight quarter on Monday, shrugging off a series of rate hikes by the central bank. Bank Indonesia will next meet on Nov. 15.
0 Comments
Leave a Reply. |
Thank you for choosing to make a difference through your donation. We appreciate your support.
This website uses marketing and tracking technologies. Opting out of this will opt you out of all cookies, except for those needed to run the website. Note that some products may not work as well without tracking cookies. Opt Out of CookiesCategories
All
Archives
April 2024
|