Rupiah Weakens, Bonds Fall as Central Bank Absent From Market
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Indonesia’s rupiah fell, snapping a four-day gain, on speculation the central bank has refrained from intervening to support the currency after it rose by the most in two years last week. Bonds dropped.
Bank Indonesia has not been in the market today, according to Wiling Bolung, head of treasury at ANZ Panin Bank in Jakarta. The central bank said last week that it will buy government bonds to support the currency. The rupiah gained 1.5 percent last week on optimism a credit rating upgrade by Moody’s Investors Service will boost demand for Indonesian assets. Markets in China, Taiwan, Singapore, Hong Kong, Malaysia and South Korea were closed today for the Lunar New Year holidays.