Rupiah Snaps Two-Day Decline Before Interest-Rate Decision
Indonesia’s rupiah rose for the first time in three days ahead of a central bank meeting at which economists predict interest rates will be left at a record low.
Bank Indonesia will hold its benchmark reference rate at 5.75 percent today, according to 25 of 26 economists in a Bloomberg News survey. Southeast Asia’s largest economy grew 6.37 percent in the second quarter from a year earlier, more than the 6.10 percent predicted in a Bloomberg survey, official data showed Aug. 6.
“The expectation is that interest rates will be the same because the gross domestic product data was very good,” said Dave Hartono, a Jakarta-based foreign-exchange trader at Bank ICBC Indonesia.
The rupiah climbed 0.1 percent to 9,486 per dollar as of 9:37 a.m. in Jakarta, according to prices from local banks compiled by Bloomberg. The currency has dropped 0.5 percent this month. One-month implied volatility, which measures exchange- rate swings used to price options, was steady at 7.50 percent.
The yield on the government’s benchmark 10-year notes held at 5.74 percent, data compiled by Bloomberg show. The finance ministry plans to raise 6 trillion rupiah ($633 million) at an auction of bonds and bills today.