Rupiah Weakens
Indonesia’s rupiah fell, headed for a third weekly loss, as overseas investors pared holdings of the nation’s stocks on concern the global economic recovery will be slow to take hold.The rupiah is poised for its biggest weekly decline in more than two months even as the government yesterday raised its economic growth target for next year and the central bank halted interest-rate cuts for the first time in 10 months. The Jakarta Composite Index slumped 2.3 percent since the end of last week.“The rupiah has been slipping in the past few weeks as the sell-off in stocks and bonds led to some moderation of inflows,” said Peter Redward, head of Asian emerging-markets research at Barclays Plc in Singapore. “The equity market is still trying to adjust its pricing of growth expectations which I think is quite underestimated.”
The rupiah dropped 0.3 percent to 10,145 per dollar, taking the loss this week to 0.9 percent, according to data compiled by Bloomberg. The rupiah may approach a range between 9,500 and 9,700 by year-end, according to Redward. The Dollar Index, which the ICE uses to track the dollar against the currencies of six major U.S. trading partners including the euro, was at 78.403 from 78.437 yesterday.
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