DBS’s Wee Forecasts Rupiah to Rise 2.8 Percent by December

Philip Wee, a senior currency economist at DBS Group Holdings Ltd. in Singapore, comments on the outlook for the Indonesian rupiah in a telephone interview today. DBS predicts the currency will strengthen 1.5 percent to 8,400 per dollar by third quarter and 2.8 percent to 8,300 by year-end.

“Indonesia’s higher budget deficit of 2 percent of GDP for 2011 on higher oil prices was, unsurprisingly, taken in stride by the market. They have better growth prospects, lower debt and high foreign reserves which can support in the strengthening of the rupiah.

‘‘Indonesia’s ratings upgrades, versus downgrades in the weak EU peripheral nations, underscore the difference between emerging countries with strong international liquidity positions as opposed to fiscal deficit or public debt problems in the advanced economies.”

To contact the reporter on this story: Chien Mi Wong in Singapore at cwong303@bloomberg.net.

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.