Indonesia’s rupiah and stocks fell for a fourth day after yesterday’s surprise interest-rate rise fueled speculation current-account data today will show little improvement from the second quarter’s record deficit.
The Philippine peso completed its biggest two-day loss since August and bonds fell as President Benigno Aquino declared a state of calamity following the destruction and loss of life from Super Typhoon Haiyan.
Destruction from Super Typhoon Haiyan, the most powerful storm on record to strike the Philippines, shows the task facing President Benigno Aquino to curb the death toll in a country prone to natural disasters.
Indonesia’s rupiah fell before data due this week on the country’s foreign-exchange reserves, which have declined 18 percent this year as the central bank defended the plunging currency. Government bonds declined.
Indonesia’s rupiah is leading declines in emerging markets this quarter, completing its worst three-month performance since 2008, as a record current-account deficit deterred investors. Government bonds fell.
Analysts are lowering their rupiah forecasts by the most in 18 months as Bank Indonesia allows the exchange rate to more accurately reflect worsening exports and an exodus of funds from the nation’s stocks and bonds.