Indonesia’s rupiah traded near a one-week high after China reported record exports for June and South Korea’s central bank raised its 2010 economic growth forecast, bolstering confidence in Asian assets.
The rupiah strengthened in each of the last four weeks as overseas investors pumped $494 million in to Indonesian shares, boosting this year’s net purchases to $983 million. Growth in Southeast Asia’s biggest economy is forecast to accelerate to 5.9 percent this year, from 4.55 percent in 2009, Finance Minister Agus Martowardojo said last week.
“Policy makers have been more positive on their economic outlooks in the past weeks,” said Brian Jackson, an emerging- markets strategist at Royal Bank of Canada in Hong Kong. “The mood in most Asian currencies should be more positive on this.”
The rupiah traded at 9,049 per dollar as of 10:28 a.m. in Jakarta, from 9,043 at the end of last week, according to data compiled by Bloomberg. The currency earlier reached 9,037, the strongest level since July 2. It has appreciated 3.8 percent in 2010, after jumping 16 percent last year. The Jakarta Composite Index climbed 0.7 percent, headed for its best close since April.
China’s exports surged 43.9 percent from a year earlier in June to $137.4 billion and the trade surplus more than doubled to $20 billion, the highest in eight months, according to data released July 10. The Bank of Korea today raised its 2010 economic growth forecast for South Korea to 5.9 percent from an April projection of 5.2 percent.
Malaysia’s gross domestic product increased 10.1 percent from a year earlier in the first quarter, the most in a decade, and central bank Assistant Governor Sukhdave Singh said July 9 that the economy was “very good” in the last three months.
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