Indonesia's rupiah set to outperform Indian rupee, says Goldman: Here's why

Indonesia is a net commodities exporter due to its coal exports, and higher commodity prices will help its fiscal balance and hurt India's

Indonesia’s rupiah is set to outperform the Indian rupee thanks to the diverging impact of oil prices, portfolio flows and monetary policy sensitivities to the Federal Reserve, according to Goldman Sachs Group Inc.

“Although India and Indonesia are typically clubbed together under “high-yielding Asian currencies, there are several key differences in the structure of both economies that may differentiate their market performance and create investment opportunities,” economists including Nupur Gupta and Jonathan Sequeira, wrote in a Jan. 7 note.

Indonesia is a net commodities exporter due to its coal exports, and higher commodity prices will help its fiscal balance and