Asia’s fifth-biggest economy saw its stock market walloped on Wednesday as investors girded for the possibility of more interest-rate hikes to safeguard Indonesia’s rupiah, which has fallen to its weakest since 1998.
The benchmark Jakarta Composite Index dropped 3.8 percent at the close, the biggest one-day slide since November 2016. The gauge is down 19 percent in dollar terms for the year so far, factoring in the slump in the rupiah against the U.S. currency. Yields on two-year government bonds have surged more than 60 basis points this week.
