Indonesia's Rupiah in Longest Run of Weekly Declines in 15 Years
- Central bank won't cut rates before Fed raises: BNI Securities
- Foreign investors pull $84 million from local stocks
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Indonesia’s declined rupiah for a 10th week, its longest losing streak since 2000, as foreigners sold stocks amid uncertainty about the timing of the first U.S. interest-rate increase in almost a decade.
The Federal Reserve refrained from raising borrowing costs on Thursday, prolonging a quandary that Bank Indonesia sees pressuring the currency. While Fed Chair Janet Yellen said most policy makers still expect to raise rates this year, she tied the decision to delay liftoff to fresh uncertainty about the global outlook and to financial market turbulence over the past month. Foreign funds have pulled $84 million from Indonesian shares this week, taking outflows this quarter to $991 million.