ID :
36103
Wed, 12/17/2008 - 13:54
Auther :
Shortlink :
https://www.oananews.org//node/36103
The shortlink copeid
RUPIAH CLIMBS AGAINST DOLLAR ON US RATE CUT
Jakarta, Dec. 17 (ANTARA) - The rupiah jumped against the US dollar in the Jakarta interbank spot market on Wednesday morning as it got positive sentiments from the U.S. Federal Reserve's decision to cut the rate to a record low.
The U.S. Federal Reserve slashed the key interest rate Tuesday to a range of zero to 0.25 percent from 1 percent, marking the lowest level since the central bank began to target it.
The local currency was trading at RP10,950/11,055 per US dollar, up 150 points from Rp11,100/Rp11,150 in the market closing a day earlier.
President Director of PT Financorpindo Nusa Edwin Sinaga said here on Wednesday that the US key rate cut gave positive sentiments to the domestic market and led to the rupiah surge.
However, he predicted the positive sentiments would not last for long and the local currency might again plunge in the afternoon.
"We just wait and see whether in the afternoon trading the rupiah will tumble or gain," he said.
Therefore, Bank Indonesia (BI, the central bank), must continue to protect the rupiah and be ready to intervene the market when needed, he said.
"We predict that the rupiah will get support from BI in order to prevent it from weakening and to keep advancing to be nearly at the level of Rp10,500," he said.
The U.S. Federal Reserve slashed the key interest rate Tuesday to a range of zero to 0.25 percent from 1 percent, marking the lowest level since the central bank began to target it.
The local currency was trading at RP10,950/11,055 per US dollar, up 150 points from Rp11,100/Rp11,150 in the market closing a day earlier.
President Director of PT Financorpindo Nusa Edwin Sinaga said here on Wednesday that the US key rate cut gave positive sentiments to the domestic market and led to the rupiah surge.
However, he predicted the positive sentiments would not last for long and the local currency might again plunge in the afternoon.
"We just wait and see whether in the afternoon trading the rupiah will tumble or gain," he said.
Therefore, Bank Indonesia (BI, the central bank), must continue to protect the rupiah and be ready to intervene the market when needed, he said.
"We predict that the rupiah will get support from BI in order to prevent it from weakening and to keep advancing to be nearly at the level of Rp10,500," he said.
