Oct. 24 (Bloomberg) -- Indonesia’s rupiah gained, erasing its earlier losses of as much as 0.4 percent, as the local stocks advanced and after a central bank bond auction. The government’s benchmark notes were little changed.
The government raised 11 trillion rupiah ($1.2 billion) from the sale of 3-year retail bonds today, Rahmat Waluyanto, director general of the Ministry of Finance’s debt management office, said in Jakarta. The ministry received 20.35 trillion rupiah of bids, he said. The Jakarta Composite Index of shares rose 2.4 percent today.
“The bonds auction was a positive factor for the rupiah,” said Mika Martumpal, a currency analyst at PT Bank Commonwealth in Jakarta. “The equity market was also strong.”
The rupiah appreciated 0.2 percent, snapping a two-day decline, to 8,841 per dollar as of 4:05 p.m. in Jakarta, according to prices from local banks complied by Bloomberg. The currency has fallen 0.6 percent this month.
Foreign ownership of the nation’s sovereign debt rose to 218.51 trillion rupiah as of Oct. 20, an increase of more than 1 trillion from Oct. 14, according to data from the finance ministry’s website.
The yield on the benchmark 10-year bond was at 6.357 percent from 6.353 percent at the end of last week, according to the Inter-Dealer Market Association.
Bank Indonesia is selling dollars when needed to ease volatility in the currency, Deputy Governor Hartadi Sarwono said on Oct. 7.
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