Economics
Rupiah Drops Most in Six Weeks After Indonesia Cuts GDP Estimate
- Currency weakens to lowest level since Asian financial crisis
- Indonesia's sovereign bond yields rise by most in two weeks
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The rupiah fell the most in six weeks after Indonesia cut its economic growth forecast and as a report from China added to concern that a slowdown in Asia’s largest economy is worsening.
The Indonesian parliament’s finance commission agreed late on Tuesday to lower the expansion projection in the 2016 budget to 5.3 percent from 5.5 percent. A preliminary factory gauge released Wednesday in China, Indonesia’s largest trading partner, missed estimates and dropped to the lowest since 2009. Investors are still waiting to see when the Federal Reserve will raise interest rates, a move that’s expected to sap demand for emerging-market assets.