Indonesia Rupiah to Extend Rally on Fiscal Hopes, Weak Dollar

Indonesia’s rupiah is set to extend gains in the second half of the year on hopes over prudent fiscal management and a bearish outlook for the US currency, analysts say.

The currency is likely to strengthen more than 4% from Friday’s close of 16,440 per dollar in the fourth quarter, according to TD Securities, one of the rupiah’s top forecasters. Citigroup Global Markets predicts the currency will appreciate to about 16,000 next year, while ING Financial Markets forecasts it will reach 15,200 by the end of December.