Burdened by a widening trade deficit and slower growth, Indonesia's rupiah has failed to follow other emerging-market currencies and recover ground against the U.S. dollar since the Federal Reserve announced it was sticking with its stimulus. Rate increases by Indonesia's central bank haven't helped. "Indonesia now has the thinnest foreign-exchange reserve coverage" in Asia, said foreign-exchange strategist Koon How Heng of Credit Suisse.

Related Summaries