People walk as a statue of a bull stands at the Indonesia Stock Exchange in Jakarta, Indonesia.
Economists predict the data due Monday will show consumer prices climbed 3.15% last month from a year earlier, the quickest pace since November, while core inflation edged up to 3.08%, the most since the middle of 2017, according to estimates compiled by Bloomberg. The widening rate differential is also helping the rupiah by encouraging foreign inflows into Indonesia as investors seek carry trades. The central bank’s focus on stabilizing the currency is serving to limit the risk to traders who use this strategy.
S&P Global Ratings has helped burnish the rupiah’s appeal by upgrading its assessment of Indonesia’s sovereign debt at the end of May, citing the nation’s strong growth prospects and prudent fiscal policy.