Dec. 7 (Bloomberg) -- Indonesia’s rupiah weakened for the first time in six days on speculation intervention by the central bank today was not sufficient to strengthen the currency. Bonds snapped a six-day gain.
The rupiah erased or reversed earlier losses in the past two days in late trade. Bank Indonesia plans to boost “intervention” in the market to support the currency, Governor Darmin Nasution said Nov. 30, a day after the rupiah reached a 17-month low of 9,240 per dollar.
“There is selling pressure from offshore investors as they are waiting to see when Bank Indonesia comes into the market,” said Wiling Bolung, head of treasury at ANZ Panin Bank in Jakarta. “The central bank has committed to support the currency and bonds.”
The rupiah declined 0.3 percent to 9,075 per dollar as of 4:28 p.m. in Jakarta, according to prices from local banks compiled by Bloomberg. It weakened as much as 0.9 percent and gained as much as 0.2 percent.
Bank Indonesia will keep its benchmark interest rate at 6 percent tomorrow, according to 17 of 22 economists surveyed by Bloomberg. Five predict a quarter of a percentage point cut. Policy makers will weigh the impact of November’s 50-basis point cut on capital flows, Perry Warjiyo, director for economic research and monetary policy at the central bank, said Dec. 5.
The yield on the government’s benchmark 8.25 percent notes due July 2021 increased four basis points, or 0.04 percentage point, to 6.10 percent today, according to prices from the Inter-Dealer Market Association.
--Editors: Andrew Janes, Simon Harvey
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