Rupiah Is Due a Rebound Though Even Bulls Have Questions
- Currency may be Asia’s top performer in the fourth quarter
- Economic recovery, high yields seen driving rupiah’s gains
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The Indonesian rupiah is seen outperforming all its Asian peers in the final months of 2020 based on consensus forecasts. Yet, even the bulls are warning that the risk proxy could face significant headwinds.
Economic recovery and the nation’s high-yielding debt could lift the rupiah about 1.3% from current levels by end of December, according to analysts surveyed by Bloomberg. It’s fallen 6.7% since January, the most in the region by far, suggesting some catch-up play could be in store.