Earlier today Bloomberg reported that Indonesia collected 6.7 billion euros in its debut sale of euro bonds amid low borrowing costs in Europe. “The nation issued the seven-year notes at 2.976 percent, or 195 basis points above the euro mid-swap rate. [..] That compares with the 4.032 percent secondary-market yield on similar-maturity sovereign dollar securities of Indonesia.” Indonesia needs proceeds from the bond issuance to finance its fiscal deficit, which was recently raised from 1.69 percent of gross domestic product (GDP) to 2.4 percent of GDP.

Indonesia has now sold IDR 249 trillion of debt in the first half of 2014, equivalent to 58 percent of its record gross issuance target at IDR 423.7 trillion.

Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.92 percent to IDR 11,963 against the US dollar on Thursday (03/07).

Indonesian Rupiah versus US Dollar (JISDOR):

| Source: Bank Indonesia