Indonesia Sukuk Yields at 7-Month High on Rupiah

Indonesia’s Islamic bond yields rose to a seven-month high as the biggest current account deficit since at least 1997 helped make the rupiah Asia’s worst-performing currency this quarter.

The yield on the 7.13 percent rupiahdenominated notes due October 2014 climbed 33 basis points in August to 5.99 percent, the highest level since Jan. 16. In Malaysia, yields on similar-maturity sukuk dropped one basis point to 3.17 percent. The rupiah has lost 1.5 percent since June and options traders are betting it will have the widest swings in the coming year.

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