Rupiah Gains on Speculation Borrowing Costs Are Headed Higher
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Indonesia’s rupiah advanced to its strongest level since 2007 on speculation the central bank will boost its policy rate further to damp inflation. Bonds rose.
Bank Indonesia raised its reference rate by 25 basis points to 6.75 percent on Feb. 4, the first increase in more than two years, after consumer prices rose the most in 21 months in January. The rupiah has strengthened 1.1 percent this year, the best performance among Asia’s 10 most-traded currencies.