ID :
31169
Wed, 11/19/2008 - 22:12
Auther :
Shortlink :
https://www.oananews.org//node/31169
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RUPIAH GAINS 25 POINTS EARLY WEDNESDAY
Jakarta, Nov. 19 (ANTARA) - The rupiah strengthened against the US dollar in the Jakarta inter-bank spot market early Wednesday, following profit-taking action by market players.
The rupiah traded at Rp11,900/12,000 per US dollar, up 25 basis points from Rp11,925/12,100 at the market's closing a day earlier.
PT Bank Mega Tbk.'s Banking Retail Director Kostaman Thayib said here on Wednesday the surge in the Indonesian currency was attributed to market players' speculative selling of US dollars.
"Market players consider it's time to sell US dollars and buy the rupiah for profit-taking. However, the volume of the US dollars sold was not big enough," he said.
Bank Indonesia Governor Boediono earlier encouraged the public to start releasing their dollars because it was profitable enough for them to do so and it could help the rupiah strengthen.
The rupiah continued under market pressure as investors bought dollars amid worries over the current financial crisis, he said.
Local investors also bought dollars because they felt safer by keeping the US dollars rather than the national currency, he said.
The rupiah's depreciation was also due to high demand for the greenback as companies had to pay their obligations and imported goods, he said.
"It happens not only here (in Indonesia) but also in other countries," he said.
Last Tuesday (Nov. 18), BI Governor Boediono said the central bank would not let the rupiah in the market develop unrealistically because that would harm the national economy.
"We will not let the rupiah market develop unrealistically," the BI governor said after a meeting with Finance Minister Sri Mulyani Inrawati.
He said that with its various instruments, BI would do its best to keep the rupiah exchange rate at a normal and realistic level.
"In essence, we are going to keep the rupiah value at a level which is good for the economy," he added.
The BI governor said that the rupiah's depreciation was caused by a combination of various factors.
"It is a combination of various factors. I think it is due to demand and supply. There is corporate demand for dollars for paying obligations and importing goods," he said.
The rupiah traded at Rp11,900/12,000 per US dollar, up 25 basis points from Rp11,925/12,100 at the market's closing a day earlier.
PT Bank Mega Tbk.'s Banking Retail Director Kostaman Thayib said here on Wednesday the surge in the Indonesian currency was attributed to market players' speculative selling of US dollars.
"Market players consider it's time to sell US dollars and buy the rupiah for profit-taking. However, the volume of the US dollars sold was not big enough," he said.
Bank Indonesia Governor Boediono earlier encouraged the public to start releasing their dollars because it was profitable enough for them to do so and it could help the rupiah strengthen.
The rupiah continued under market pressure as investors bought dollars amid worries over the current financial crisis, he said.
Local investors also bought dollars because they felt safer by keeping the US dollars rather than the national currency, he said.
The rupiah's depreciation was also due to high demand for the greenback as companies had to pay their obligations and imported goods, he said.
"It happens not only here (in Indonesia) but also in other countries," he said.
Last Tuesday (Nov. 18), BI Governor Boediono said the central bank would not let the rupiah in the market develop unrealistically because that would harm the national economy.
"We will not let the rupiah market develop unrealistically," the BI governor said after a meeting with Finance Minister Sri Mulyani Inrawati.
He said that with its various instruments, BI would do its best to keep the rupiah exchange rate at a normal and realistic level.
"In essence, we are going to keep the rupiah value at a level which is good for the economy," he added.
The BI governor said that the rupiah's depreciation was caused by a combination of various factors.
"It is a combination of various factors. I think it is due to demand and supply. There is corporate demand for dollars for paying obligations and importing goods," he said.
