ID :
45465
Fri, 02/13/2009 - 14:44
Auther :
Shortlink :
https://www.oananews.org//node/45465
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RUPIAH FALLS TO RP11,850 PER US DOLLAR EARLY FRIDAY
Jakarta, Feb. 13 (ANTARA) - The rupiah weakened against the US dollar in the Jakarta interbank spot market early Friday, on euphoria over the US government's $837-billion economic stimulus package.
The Indonesian currency traded at Rp11,850/11,950 per US dollar on Friday morning.
"The US government's $837 billion stimulus package has given positive boost to the greenback, which has continued to strengthen against the rupiah, although the Uncle Sam nation is being hit by quite bad economic crisis," Edwin Sinaga, a money market observer, said here on Friday.
However, according to him, the greenback surge against the local currency was actually only on the surface because a law on the stimulus package had not been passed.
So, the market pressure on the Indonesian currency was expected not to last long and the rupiah would soon advance again, he said.
The current US dollar gain was also thanks to the US government's plan to subsidize mortgages in a new front to fight the credit crisis. The plan under consideration would seek to help homeowners before they fall into arrears on their loans.
The positive issue boosted the greenback to advance in the global money market, he said.
The rupiah usually would move upward in the run up to the general elections if the elections run peacefully and smoothly, he said.
He expressed his optimism that the local currency would improve in the future as foreign investors were expected to enter the domestic market, which is still considered potential in Asia.
Indonesia is the third Asian market, after China and India, which still enjoy economic growth despite the global crisis.
Last Thursday morning (Feb. 12), the rupiah traded at Rp11,810/11,860 per US dollar, down 60 points from Rp11,750/11,775 at the market's close a day earlier.
The Indonesian currency traded at Rp11,850/11,950 per US dollar on Friday morning.
"The US government's $837 billion stimulus package has given positive boost to the greenback, which has continued to strengthen against the rupiah, although the Uncle Sam nation is being hit by quite bad economic crisis," Edwin Sinaga, a money market observer, said here on Friday.
However, according to him, the greenback surge against the local currency was actually only on the surface because a law on the stimulus package had not been passed.
So, the market pressure on the Indonesian currency was expected not to last long and the rupiah would soon advance again, he said.
The current US dollar gain was also thanks to the US government's plan to subsidize mortgages in a new front to fight the credit crisis. The plan under consideration would seek to help homeowners before they fall into arrears on their loans.
The positive issue boosted the greenback to advance in the global money market, he said.
The rupiah usually would move upward in the run up to the general elections if the elections run peacefully and smoothly, he said.
He expressed his optimism that the local currency would improve in the future as foreign investors were expected to enter the domestic market, which is still considered potential in Asia.
Indonesia is the third Asian market, after China and India, which still enjoy economic growth despite the global crisis.
Last Thursday morning (Feb. 12), the rupiah traded at Rp11,810/11,860 per US dollar, down 60 points from Rp11,750/11,775 at the market's close a day earlier.
