Indonesian Rupiah Gains as Risk Appetite Returns; Bonds Fall

Indonesia's rupiah rose the most in seven weeks as investors resumed buying emerging-market assets after the Federal Reserve cut its discount lending rate to contain losses related to subprime mortgages.
Bonds fell. The rupiah climbed for a second day as the Fed's decision on Aug. 17 to reduce borrowing costs between banks sparked a global equity rally. Indonesia last week reported the fastest economic growth in more than two years and central bank Governor

Indonesia's Jakarta Composite Index advanced the most in a year after losing 14 percent last week.