(April 24): Foreign investors have sold Indonesian stocks for 15 straight days, the longest stretch since January 2023, on expectations of a prolonged period of higher interest rates and a stronger US dollar.

Global funds offloaded US$814.5 million of the nation’s stocks on a net basis this month, according to data compiled by Bloomberg as of Tuesday. They’re still net buyers so far this year. Other Southeast Asia markets, including Malaysia, Vietnam and the Philippines, have seen overseas investors withdraw funds in April.

“Capital outflow accelerated on an abrupt shift in interest rate expectations, compounded by heightened geopolitical risk in the Middle East,” said Alan Richardson, a fund manager at Samsung Asset Management Co Ltd. “The combination of a stronger US dollar, higher bond yields, widening credit spreads and higher VIX equity volatility has heightened risk aversion to equities.”

At the time of writing, Indonesia’s central bank was expected to delay its start to easing monetary policy on Wednesday, partly because of uncertainty around the Federal Reserve’s rates outlook. That may allow Bank Indonesia to help stabilise the rupiah, which has been among the hardest-hit in Asia in April, extending its decline against the US dollar to a four-year low, after weakening about 1.9%. At the same time, the nation’s benchmark equity index slid more than 3% from a mid-March record high.