Feb. 22 (Bloomberg) -- Indonesia’s rupiah declined as concern a bailout package for Greece may not be enough to avert a default deterred investors from buying emerging-market assets. Government bonds advanced.
The Jakarta Composite Index of shares dropped 0.4 percent after economists from Citigroup Inc. and Commerzbank AG warned yesterday that Greece may fail to meet the terms of its 130 billion euro ($172 billion) second bailout amid a fifth year of recession, looming elections and social unrest. The rupiah has dropped 0.7 percent this month as exchange data showed global funds sold $143 million more local stocks than they bought through yesterday.
“The euphoria from the Greece deal yesterday has given way to a waiting game,” said Gundy Cahyadi, an economist at Oversea-Chinese Banking Corp. in Singapore. “Whether or not the solution will be sustainable in the long run has yet to be seen.”
The rupiah fell 0.1 percent to 9,059 per dollar as of 3:44 p.m. in Jakarta, according to prices from local banks compiled by Bloomberg. The currency fell as much as 0.2 percent earlier.
The yield on the government’s 7 percent bonds due May 2022 was little changed at 5.26 percent, according to midday prices from the Inter Dealer Market Association.
--With assistance from Lilian Karunungan in Singapore. Editors: Simon Harvey
To contact the reporters on this story: Yudith Ho in Singapore at firstname.lastname@example.org.
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