Indonesian Rupiah Rises To 6-week High On China Data
The Indonesian rupiah soared against the dollar Wednesday, boosted by encouraging data and a stabilizing crude-oil prices. A monthly update on China's foreign currency holdings showed the decline in the country's reserves slowed in September, which analysts said was an indication that the country's currency, the yuan, won't weaken much further. The Malaysian Ringgit also surged after the data. Malaysia and Indonesia are net exporters of industrial commodities like crude oil and both compete with China in the international export market. When China devalued the yuan back in August, both currencies sold off in sympathy. The rupiah was up 3% against the dollar to 13,884.50 late Wednesday in New York -- its highest level since Aug. 21, according to FactSet data. It traded at 14,312 to the dollar late Tuesday. The ringgit traded at 4.2 ringgit to the dollar Wednesday, its strongest level since Sept. 17. The Malaysian currency was up 2.6% against the dollar late Tuesday.
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