Bloomberg News

Rupiah Weakens for Fourth Day, Bonds Decline on Global Slowdown

July 09, 2012

Indonesia’s rupiah dropped for a fourth day and government bonds declined after a U.S. jobs report missed estimates, adding to concern the global economy is slowing and curbing demand for emerging-market assets.

The MSCI Asia-Pacific Index (MXAP) dropped the most in five weeks after U.S. Labor Department data on July 6 showed June payrolls increased by 80,000, compared with the 100,000 rise projected in a Bloomberg survey. Premier Wen Jiabao said downward pressure on the Chinese economy is still “relatively large,” the official Xinhua News Agency reported yesterday. Global funds added 2.35 trillion rupiah ($249 million) to their holdings of government bonds in the first three days of last week, finance ministry data show.

“Global factors are keeping the rupiah from strengthening, even after Indonesia began to attract foreign investment,” said Apressyanti Senthaury, a Jakarta-based research analyst in the treasury division at PT Bank Negara Indonesia. “The U.S. data couldn’t ease the market’s concern.”

The rupiah fell 0.3 percent to 9,430 per dollar as of 3:41 p.m. in Jakarta, according to prices from local banks compiled by Bloomberg. The currency reached 9,468 today, the weakest since June 29. One-month implied volatility, which measures exchange-rate swings used to price options, held at 8.25 percent.

The yield on the government’s 7 percent bonds due May 2022 climbed four basis points, or 0.04 percentage point, to a one- week high of 6.09 percent, according to prices from the Inter Dealer Market Association.

To contact the reporter on this story: Yudith Ho in Singapore at

To contact the editor responsible for this story: Sandy Hendry at

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