JAKARTA: Indonesia's rupiah weakened for the first time in four days on speculation local companies stepped up dollar purchases to meet import and debt payments.
Government bonds were steady before Bank Indonesia meets this week to review its reference rate. All 22 economists in a Bloomberg survey predict the benchmark will be left unchanged at 5.75 % for a seventh month. Indonesia's imports exceeded exports for a fourth month in July, when the trade deficit was $177 million, according to official figures.
"We see regular demand for the dollar in the third quarter as corporates start fulfilling their annual payments," said Taufan Tito, a Jakarta-based foreign-exchange dealer at PT Bank Rakyat Indonesia. "The rupiah's gains would be limited as we see many orders waiting to buy dollars."
The rupiah dropped 0.1 % to 9,579 per dollar as of 3:44 p.m. in Jakarta, the biggest decline since Sept. 5, according to prices from local banks compiled by Bloomberg. One- month implied volatility, which measures exchange-rate swings used to price options, was unchanged at 5.85 %, the lowest level since May 2.
The yield on the government's 7 % notes due May 2022 was little changed at 5.97 %, the lowest level since Aug. 22, prices from the Inter Dealer Market Association show. (Bloomberg/msw)
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