KONTAN.CO.ID - SINGAPORE. Indonesia's rupiah led declines among emerging Asian currencies on Monday, as a strengthening dollar and concerns about China's faltering economic growth ahead of key data, which could bolster hopes for more direct policy stimulus from Beijing. The rupiah, the best performing Asian currency so far this year, weakened 0.8% against the greenback to its lowest level since March. Indonesia's central bank intervened in the spot foreign exchange and domestic non-deliverable forward markets to prevent high currency volatility, according to an official. "We are eyeing a prospective narrowing current account surplus and it may turn into a deficit next year, which is not a positive factor for the rupiah," said Fakhrul Fulvian, an economist at Trimegah Securities. Fulvian added that pressure on the rupiah is likely to continue until higher commodity prices pick up.
Indonesian Rupiah Drags Asian FX Lower, China Woes Linger
KONTAN.CO.ID - SINGAPORE. Indonesia's rupiah led declines among emerging Asian currencies on Monday, as a strengthening dollar and concerns about China's faltering economic growth ahead of key data, which could bolster hopes for more direct policy stimulus from Beijing. The rupiah, the best performing Asian currency so far this year, weakened 0.8% against the greenback to its lowest level since March. Indonesia's central bank intervened in the spot foreign exchange and domestic non-deliverable forward markets to prevent high currency volatility, according to an official. "We are eyeing a prospective narrowing current account surplus and it may turn into a deficit next year, which is not a positive factor for the rupiah," said Fakhrul Fulvian, an economist at Trimegah Securities. Fulvian added that pressure on the rupiah is likely to continue until higher commodity prices pick up.