Indonesia stock index falls 2% to its lowest since March 2014

[JAKARTA] Indonesia's benchmark stock index fell 2 per cent on Tuesday to its lowest level since March 2014, leading the declines in Southeast Asian stocks after China allowed its currency to fall.

Banking stocks led the declines, with one of the country's largest lenders, Bank Rakyat Indonesia, falling 3.8 per cent.

Other currencies in Asia also lost ground to the US dollar as investors reasoned they would need to fall to keep exports competitive with China. The Indonesian rupiah falls to its lowest level since July 1998.

REUTERS