Jan. 24 (Bloomberg) -- Indonesia’s rupiah fell, snapping a four-day gain, on speculation the central bank has refrained from intervening to support the currency after it gained by the most in two years last week.
Bank Indonesia has not been in the market today, according to Wiling Bolung, head of treasury at ANZ Panin Bank in Jakarta. The rupiah appreciated 1.5 percent last week on optimism a credit rating upgrade by Moody’s Investors Service will boost demand for Indonesian assets. Financial markets in China, Taiwan Singapore, Hong Kong, Malaysia and South Korea remained closed today for the Lunar New Year holidays.
“Bank Indonesia is always monitoring the market and it will come in when it thinks it’s the right time,” Bolung said. “It will be a quiet day today because of the holidays.”
The rupiah dropped 0.5 percent to 8,985 per dollar from Jan. 20 as of 9:42 a.m. in Jakarta, according to prices from local banks compiled by Bloomberg. Local financial markets were closed yesterday.
The yield on the government’s 7 percent bonds due May 2022 fell 57 basis points, or 0.57 percentage point, last week to 5.61 percent, according to the prices by Inter-Dealer Market Association.
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