Rupiah Drops to Five-Week Low as Paris Attacks Deter Risk-Takingby
Indonesian exports and imports decline more than forecast
Country reported $4 billion current-account deficit on Friday
The rupiah dropped to a five-week low as the terror attacks in Paris deterred risk-taking and declines in Indonesian exports and imports exceeded forecasts.
Overseas sales fell the most in three years in October, while inward shipments decreased the most since July, reports showed on Monday. French warplanes bombed Islamic State’s headquarters in Raqqa after the European nation said the attacks were directed from Syria. Southeast Asia’s largest economy remains vulnerable to volatility in global markets after a report showed Friday that its current account stayed in deficit for a 16th quarter.
The rupiah fell 0.5 percent, the most in Asia after South Korea’s won, to 13,728 a dollar as of 4 p.m. in Jakarta, according to prices from local banks. The currency touched 13,757 earlier, the weakest level since Oct. 8. It’s lost 9.8 percent this year, the most in the region after Malaysia’s ringgit.
“There’s risk aversion following the Paris attacks," said Vishnu Varathan, a Singapore-based economist at Mizuho Bank Ltd. “Almost every other currency is down within the emerging market and Asia space.”
Exports dropped 20.98 percent from a year earlier, compared with the median estimate for a 16.78 percent decline in a Bloomberg survey. Imports plunged 27.81 percent. The current-account deficit was $4 billion in third quarter, less than $4.3 billion in the previous three months, the central bank reported Friday.
Government bonds fell, pushing the 10-year yield up one basis point to 8.65 percent, according to the Inter Dealer Market Association. The two-year yield rose five basis points to 8.41 percent.