The world’s second-largest economy expanded 7.9 percent last quarter from a year earlier, up from 7.4 percent in the previous period, the government reported today. That was more than the 7.8 percent median estimate of analysts in a Bloomberg survey. Indonesia’s exports contracted for an eighth straight month in November, resulting in a second consecutive trade deficit, according to official data.
“Better economic growth in China adds to positive sentiment for Asian currencies including the rupiah,” said Fahrudin Haris Prastowo, a foreign-exchange trader at PT Bank Rakyat Indonesia in Jakarta. “Indonesia’s exports may begin to pick up as demand rises in the region.”
One-month non-deliverable forwards rose 0.2 percent to 9,875 per dollar as of 9:20 a.m. in Jakarta, the highest level since Jan. 10, data compiled by Bloomberg show. That’s 2.1 percent weaker than the spot rate, which fell 0.2 percent to 9,670, prices from local banks compiled by Bloomberg show.
The currency’s one-month implied volatility, a measure of expected moves in the exchange rate used to price options, was unchanged at 6.75 percent, a level last reached in September.
The yield on the government’s 5.625 percent bonds due May 2023 held at 5.26 percent, the least since Jan. 11, according to prices from the Inter Dealer Market Association.
To contact the reporter on this story: Yudith Ho in Jakarta at firstname.lastname@example.org