Economics
Rupiah Drops to Five-Week Low as Growth Slows, Dollar Advances
- Government spending to boost Indonesia's economy: Nomura
- Currency playing catch-up after two-day holiday: ANZ
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The rupiah fell to a five-week low after Indonesia’s economic growth disappointed and the prospect of higher U.S. interest rates boosted the dollar.
The Indonesian currency weakened as local markets opened after a two-day holiday and traders reacted to gains in the greenback following comments by regional Federal Reserve officials that monetary policy tightening remains on the cards this year. Gross domestic product increased 4.9 percent in the first quarter from a year earlier, according to a May 4 report, slowing from the previous three months and less than the 5.07 percent growth forecast in a Bloomberg survey of economists.