Economics
Asia's Biggest Currency Gain in 20 Years May Be About to End
- Indonesia rupiah, seen as bellwether, has slid to two-year low
- ‘Air-pockets’ are ahead for Asia currencies: Mizuho’s Varathan
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Asian currencies may be on the verge of a correction after completing the best year in at least two decades. The warning sign? Indonesia’s rupiah slumped to a two-year low last week.
The rupiah is seen as a bellwether of sorts for Asia given the high foreign ownership of the nation’s bonds. The currency is typically among the first in the region to be sold when sentiment sours, and this often heralds a broader decline among its peers.