Indonesia’s surprise interest-rate increase yesterday boosted the rupiah, stemming the currency’s biggest monthly decline in almost five years. To drive a sustained revival, the government needs to curb the country’s record current-account gap.
Sri Lanka’s sovereign rating, which is on par with Kenya and Ukraine, may be raised as funds from a $2.5 billion International Monetary Fund loan improved the “external liquidity situation,” Standard & Poor’s said.
Nawaz Sharif was headed for a record third term as prime minister of Pakistan as unofficial results from a landmark election gave him the convincing win he sought to tackle a slumping economy and growing militancy.
Pakistan’s most destructive floods are a “temporary setback” and won’t have a bearing on the nation’s credit rating, Standard & Poor’s said even as the government predicted the disaster will hurt growth.
Indonesia’s 10-year government bonds rose for the first time in seven days after the central bank and local funds bought the notes, lured by a surge in the yield to a 21-month high. Rupiah forwards advanced.
Philippine stocks rose to a record after it beat Indonesia to win an investment grade from Standard & Poor’s, as President Benigno Aquino outshines Susilo Bambang Yudhoyono in improving government finances and spurring growth.
Indonesian lawmakers yesterday approved Finance Minister Agus Martowardojo to become the next central bank governor after he said his priorities would be a stable exchange rate and keeping inflation low.
For K. Indrani, who cleans homes in Colombo to support her invalid husband and 16-year-old daughter, living on the 600 rupees ($4.70) she earns a day just got harder because the Sri Lankan government raised fuel prices in February.
The Philippines is nearing its goal of achieving an investment grade credit rating, central bank Governor Amando Tetangco said as the government prepares to meet Standard & Poor’s, Moody’s Investors Service and Fitch Ratings.