Risky: A shopkeeper counting rupiah in Jakarta. The rupiah has slumped 3.7% this year, the worst performer in emerging Asia after the Thai baht. — Bloomberg
JAKARTA: Indonesia’s central bank says the rupiah is “very undervalued” following a two-month slide. Investment banks and money managers are predicting further losses.
Goldman Sachs Group Inc says climbing US yields and a potentially firmer dollar will keep hurting Indonesian assets in the near term, while PineBridge Investments Asia Ltd says the rupiah will keep sliding due to the global risk-off trade and as overseas funds take home dividends. Loomis Sayles Investment Asia Pte is bearish due to the Covid-19 situation.
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