Bloomberg News

Rupiah Declines Most in a Week as Exports Slow; Bonds Advance

February 01, 2012

Feb. 1 (Bloomberg) -- Indonesia’s rupiah fell the most in a week as official data today showed exports from Southeast Asia’s biggest economy grew the least in more than two years. Bonds gained as inflation eased for a fifth month.

Overseas sales rose 2.2 percent in December from a year earlier, the least since September 2009, the statistics department said today. Economists surveyed by Bloomberg had predicted a 3.5 percent gain. The currency dropped toward a two- week low after exchange data showed global funds sold $95 million more local shares than they bought in the first two days of this week.

“The export data will be a reminder that Indonesia isn’t isolated from what’s going on in the world,” said Gundy Cahyadi, an economist at Oversea-Chinese Banking Corp. in Singapore. “The European crisis is putting pressure on currencies.”

The rupiah dropped 0.4 percent to 9,034 per dollar as of 3:20 p.m. in Jakarta, according to prices from local banks compiled by Bloomberg. The currency gained 0.8 percent in January, advancing for a second month.

Consumer prices in Indonesia rose 3.65 percent last month from a year earlier after climbing 3.79 percent in December, the Central Bureau of Statistics said today. The median estimate of 24 economists surveyed by Bloomberg News was for a 3.61 percent increase.

The rate on the government’s benchmark bonds fell the most in almost two weeks. The yield on the 7 percent notes due May 2022 fell 17 basis points, or 0.17 percentage point, to 5.24 percent today, according to midday prices by the Inter-Dealer Market Association.

--Editors: Greg Ahlstrand

To contact the reporter on this story: Khalid Qayum in Singapore at kqayum@bloomberg.net

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net.


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