Nov. 2 (Bloomberg) -- Indonesia’s rupiah fell for a third day as the region’s equities slid on concern the European bailout plan reached last week will unravel, reducing demand for emerging-market assets. Benchmark bonds declined.
The currency touched a three-week low as the MSCI Asia Pacific Index of shares dropped for a third day. Overseas investors sold $7 million more Indonesian stocks than they bought in the first two days of this week, according to exchange data. Greek Prime Minister George Papandreou said today that a referendum on Europe’s rescue package will confirm the nation’s membership of the euro.
“The rupiah’s weakness is driven by global stocks,” said Mika Martumpal, a currency analyst at PT Bank Commonwealth in Jakarta. “The development in Greece is causing uncertainty on how Europe will manage its debt crisis. That has led to some outflows from equities.”
The rupiah depreciated 0.4 percent to 8,930 per dollar as of 4 p.m. in Jakarta, according to prices from local banks compiled by Bloomberg. It earlier reached 8,986, which was the lowest level since Oct. 13. The currency has dropped 1.6 percent this week.
The yield on government’s 8.25 percent bonds due July 2021 climbed five basis points, or 0.05 percentage point, to 6.41 percent today.
--Editors: Greg Ahlstrand
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