Oct. 26 (Bloomberg) -- Indonesia’s rupiah weakened for a second day on speculation importers are boosting dollar purchases to pay month-end bills.
Import growth probably accelerated to 52.3 percent in September from a year earlier after an increase of 23.7 percent the previous month, according to the median forecast of economists in a Bloomberg survey before official data on Nov. 1. The MSCI Asia-Pacific Index of shares was little changed before European leaders gather to devise a plan to fight the sovereign- debt crisis.
“Demand for dollars from importers typically grows toward the end of the month,” said Hideki Hayashi, a researcher at the Japan Center for Economic Research in Tokyo. “Indonesia’s imports are increasing, reflecting solid domestic demand, and so there will be more demand for dollars. Europe’s issue remains a key factor in the market as chances of seeing a fundamental solution isn’t big and that means investors’ risk appetite isn’t improving sharply.”
The rupiah slid 0.3 percent to 8,881 per dollar as of 3:24 p.m. in Jakarta, according to prices from local banks compiled by Bloomberg. The currency may trade between 8,800 and 8,900 over the next week, Hayashi said.
European leaders are holding the 14th crisis summit in 21 months to discuss Greece’s second bailout, the recapitalization of banks and strengthening the 440 billion-euro ($613 billion) rescue fund. While heads of state will meet as planned, a European Union finance ministers’ meeting was canceled as the bank-recapitalization issue can’t be decided before other elements of the rescue package, a person familiar with the matter said.
The yield on the 8.25 percent note due July 2021 declined three basis points, or 0.03 percentage point, to 6.36 percent, according to intraday prices from the Inter Dealer Market Association.
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