Rupiah Appreciates After Funds Boost Indonesian Stock Holdings

Indonesia’s rupiah advanced to a three-month high after overseas investors boosted holdings of the nation’s assets to benefit from growth in Southeast Asia’s biggest economy. Bonds rose for a second consecutive day.

The currency has gained 1.9 percent this month as official data showed gross domestic product rose 6.9 percent in the fourth quarter, the most since 2004, and Bank Indonesia raised borrowing costs for the first time in more than two years on Feb. 4. Exchange data show global funds bought $231.7 million more local shares than they sold this month, and the government said today foreign holdings of the nation’s debt rose 1.8 percent from the end of January to 198.5 trillion rupiah ($22.4 billion).