Asian currencies had the best week since September 2012, led by Indonesia’s rupiah and India’s rupee, as signs the U.S. economic recovery is losing pace fueled speculation the Federal Reserve will slow further stimulus cuts.
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.
President Susilo Bambang Yudhoyono made progress on his bid to appoint Indonesia Finance Minister Agus Martowardojo the next central bank chief as a parliamentary panel agreed to put the candidate through a fit-and-proper test.
The rupiah fell after Bank Indonesia said the tender will stabilize after rallying this year, and before data that some analysts are expecting will show the trade balance swung to a shortfall in January.
Indonesia kept its key interest rate unchanged for a third straight meeting as a narrowing current- account deficit and slowing inflation reduced the need for tighter monetary policy. The rupiah rose the most in a month.