Indonesia’s rupiah reduced earlier losses on speculation the central bank intervened to curb declines in the currency. The government’s benchmark bond fell for a 10th day, its longest losing streak since October 2010.
The currency pared losses after falling as much as 1.9 percent earlier toward a 17-month low. The rupiah has reduced or reversed declines in each of the previous five trading days. Bank Indonesia will remain in the market to reduce volatility, Deputy Governor Hartadi Sarwono said on Nov. 23.
“We heard that Bank Indonesia sold dollars,” said Mika Martumpal, a currency analyst at PT Bank Commonwealth in Jakarta. “The central bank has been trying to ease volatility in the currency.”
The rupiah slid 0.9 percent to 9,135 per dollar as of 4:10 p.m. in Jakarta, according to prices from local banks compiled by Bloomberg. It reached 9,228 earlier, approaching 9,230 touched on Nov. 24, the weakest level since June 2010.
The yield on the government’s benchmark 8.25 percent notes due July 2021 increased seven basis points, or 0.07 percentage point, to 6.88 percent today, according to the Inter-Dealer Market Association. The rate rose 47 basis points last week.
To contact the reporter on this story: Khalid Qayum in Singapore at firstname.lastname@example.org
To contact the editor responsible for this story: Sandy Hendry at email@example.com