Indonesian Bonds Advance, Rupiah Falls After Interest-Rate Cut
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Indonesia’s rupiah fell for a second day and bonds completed a fifth weekly advance after Bank Indonesia unexpectedly cut borrowing costs yesterday.
The central bank reduced the reference rate by 25 basis points to 5.75 percent, a move predicted by four of 15 economists surveyed by Bloomberg, with the rest expecting no change. Overseas investors sold $196 million more local shares than they bought this week through yesterday, exchange data show. Offshore funds raised holdings of government debt by 5.7 percent to 235.54 trillion rupiah ($26 billion) this year through Feb. 7, finance ministry data show.