More Pain Looms for Indonesian Rupiah on Narrowing Yield Spread
- IDR fell 3% last quarter, biggest decline in more than a year
- Narrowing yield gap with US may spur more outflows: SC
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The Indonesian rupiah just had the worst quarter in more than a year, and analysts see more losses ahead.
The currency broke the closely watched 15,400 level last week, and there is a possibility it may test this year’s low of 15,638, according to Malayan Banking Berhad. Higher crude prices threaten to worsen the net oil-importing nation’s finances, and that along with higher US yields and a stronger dollar are likely to weigh down the rupiah.