Indonesia's foreign exchange reserves rose by around $400 million in October to $115.2 billion, the first increase since January as the central bank eased off on its defence of the fragile rupiah currency. Bank Indonesia (BI) said on Wednesday the level of reserves in October was equivalent to 6.4 months of imports, above the international minimum adequacy ratio of three months.
Reserves reached an all-time high of $132 billion in January, but had declined to $114.8 billion in September as BI intervened to defend the falling rupiah. The Indonesian currency managed to catch its breath for most of October, and is off a near 20-year low, having bounced sharply in recent days to lead gains in emerging Asian currencies.
Global sentiment towards riskier assets has improved over the past week or so on hopes that the United States and China were looking for ways to resolve their heated trade dispute.
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