Indonesia c.bank says pressure on current a/c deficit will ease
JAKARTA Aug 19 (Reuters) - Indonesia's central bank said that pressure on the country's current account deficit will ease in the second half of the year due to an improvement in the financial and capital account.
The rupiah on Monday fell to the lowest level since May 2009 after Bank Indonesia on Friday announced that the current account deficit widened to 4.4 percent of gross domestic product in the second quarter of the year, from around 2.4 percent in January-March.
"We estimate pressure on current account will ease in the third and fourth quarters, though the deficit will remain," the bank's spokesman Peter Jacobs told Reuters.
The wider current account in the second quarter has raised concerns among offshore investors, putting more pressure on the ailing rupiah. (Reporting by Rieka Rahadiana; Editing by Jonathan Thatcher and Richard Borsuk)