Indonesia's rupiah gains on high bond yields; Asian FX steady after Fed hold
TLT•The rupiah strengthened as Indonesia’s 10-year bond yield held at 7.707%, its highest since mid-May 2020, while Asian currencies broadly gained after the Fed left rates unchanged.
1. Rupiah firms
Indonesia’s 10-year bond yield held at 7.707%, its highest since mid-May 2020, helping the rupiah pull away from record lows it neared earlier this week. The yield is up more than 150 basis points this year, and swaps markets signal expectations of further Bank Indonesia tightening.
2. Regional markets diverge
The rupiah rose 0.39%, while the won gained 0.49% and the ringgit 0.30% after the Fed held rates unchanged. Jakarta stocks fell 2.5%, South Korean stocks dropped more than 2%, and Taiwan stocks lost 1.9%.
