Rupiah Forwards, Bonds Plunge as Oil Gains Worsen Trade Outlook Rupiah forwards plunged for a fourth week and bonds declined on concern rising oil prices related to the threat of U.S. military action in Syria will worsen Indonesia’s trade deficit. The rupiah slid 11 percent this quarter, the worst performance among 24 emerging-market currencies tracked by Bloomberg, due to record current account and trade shortfalls. Purchases of oil and gas by Indonesia, a net importer of crude, increased 50 percent in July, while exports fell for a 16th month, official data showed this week. “Oil prices are the key issue, as they feed into the trade, current account and budget deficits,” said Leo Rinaldy, a Jakarta-based economist at PT Mandiri Sekuritas, a unit of the nation’s largest bank by assets. The decline in foreign-exchange reserves may have slowed in August, providing “some relief,” Rinaldy said. One-month non-deliverable forwards fell 4 percent this week to 11,910 per dollar as of 10:28 a.m. in Jakarta and reached 11,945 today, the lowest level since March 2009, according to data compiled by Bloomberg. In the spot market, the currency dropped 2.3 percent to 11,175 per dollar from Aug. 30, declining for a ninth straight week, the longest losing streak since 2004, prices from local banks compiled by Bloomberg show. The forwards contracts traded 6.2 percent weaker than the spot rate today, the biggest gap since Aug. 27, when the margin touched 6.6 percent, the widest since September 2011. bloomberg/news/2013-09-06/rupiah-forwards-bonds-plunge-as-oil-gains-worsen-trade-outlook.html
Posted on: Fri, 06 Sep 2013 04:15:01 +0000
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