Rupiah Leads Drop in Emerging Currencies on Deficit Concern

The rupiah led losses in emerging markets this month amid concern Indonesia’s current-account gap will leave the nation vulnerable to fund outflows when the U.S. cuts stimulus. Government bonds fell the most since 2011.

The deficit was equivalent to 3.8 percent of gross domestic product in the last quarter, from a record 4.4 percent in the previous three months, official data show. Bank Indonesia sees a gap of 0.25 percent to 2.5 percent of GDP as sustainable, Governor Agus Martowardojo said Nov. 22. The government’s first domestic sale of dollar debt raised less than half the targeted amount this week and global funds sold $347 million more local stocks than they bought in November. June’s net sales of $2.03 billion were the biggest since 2005.