Indonesia’s rupiah fell, weakening toward a seven-week low, on concern Europe’s credit crisis will slow growth in Southeast Asia’s biggest economy.
The Bloomberg-JPMorgan Asia Dollar Index retreated for a second straight day after Standard & Poor’s cut France’s top credit rating and downgraded eight other euro-zone nations last week. The rupiah has lost 0.3 percent since Jan. 12, when Bank Indonesia left its benchmark reference rate unchanged at 6 percent following a monetary-policy review.
“There is more risk aversion after the euro-zone downgrades,” said Saktiandi Supaat, head of foreign-exchange research at Malayan Banking Bhd. in Singapore. “Global factors are hurting the overall sentiment.”
The rupiah slid 1.1 percent to 9,185 per dollar as of 3:15 p.m. in Jakarta, according to prices from local banks compiled by Bloomberg. The currency touched 9,218 earlier and reached 9,233 on Jan. 9, which was the weakest since Nov. 29.
The yield on the government’s 7 percent bonds due May 2022 fell five basis points, or 0.05 percentage point, from the end of last week to 6.13 percent today, according to the midday prices by Inter-Dealer Market Association.