Bloomberg News

Rupiah Rises a Second Day on Greece Debt Progress; Bonds Gain

February 21, 2012

Feb. 20 (Bloomberg) -- Indonesia’s rupiah rose for a second day after Germany signaled that European finance ministers may be ready to back a second bailout for Greece. Bonds gained.

The rupiah’s movement may be restricted after central bank Governor Darmin Nasution said on Feb. 10 the monetary authority had been intervening to curb volatility in the currency and bond markets. European officials will try to settle disputes today as they close in on a 130 billion euro ($172 billion) Greek bailout and avoid the euro area’s first sovereign default.

“It’s still mostly external concerns that are driving the rupiah, like the progress in Greece,” said David Sumual, an economist at PT Bank Central Asia in Jakarta.

The rupiah rose 0.1 percent to 9,038 per dollar as of 9:53 a.m. in Jakarta after climbing as much as 0.6 percent earlier, according to prices from local banks compiled by Bloomberg. The currency has advanced 0.4 percent this year.

The yield on the benchmark 10-year government bonds fell three basis points, or 0.03 percentage point, to 5.26 percent, according to data compiled by Bloomberg.

--Editors: Simon Harvey, Ven Ram

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To contact the reporters on this story: Yudith Ho in Singapore at yho35@bloomberg.net; Lilian Karunungan in Singapore at lkarunungan@bloomberg.net.

To contact the editor responsible for this story: Simon Harvey at sharvey6@bloomberg.net.


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