Rupiah slides to fresh 16-year low, fears of bond sales

SINGAPORE (Reuters) - The Indonesian rupiah skidded to a fresh 16-year low versus the dollar on Tuesday, having come under pressure since late last week due to worsening global risk sentiment and fears overseas investors were selling domestic bonds.

The rupiah fell about 1.5 per cent to 12,890 versus the US dollar, its lowest level since August 1998 according to Reuters data.

Year-end corporate demand for the dollar has also dented the rupiah, which has faltered in recent weeks on the back of market expectations for the U.S. Federal Reserve to start raising interest rates some time next year.