Goldman Sees Indonesia Less Vulnerable to Selloff Than 2013
- Rupiah was Asia’s best-performing currency after yen last year
- Growth forecast to quicken to 5.3% in 2017 from 5% this year
A clerk arranges bundles of Indonesian 100,000 rupiah banknotes at a currency exchange office.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
Indonesia is better placed to tackle any currency volatility and capital outflows triggered by higher U.S. interest rates than during the taper tantrum in 2013, according to Goldman Sachs Group Inc.
The rupiah, Asia’s best-performing currency after the yen last year, may not depreciate significantly from the current level as the high yield offered by government bonds give some buffer against capital losses, Andrew Tilton, Goldman Sachs’ chief Asia-Pacific economist said in an e-mail.