RUPIAH FALLS 90 POINTS EARLY FRIDAY

Jakarta, Feb. 20 (ANTARA) - The rupiah's exchange rate fell 90 points against the US dollar in the Jakarta interbank spot market here on Friday morning, on high demand for the greenback.

The Indonesian currency traded at Rp12,050/12,060 per US dollar, down 90 points from Rp11,960/11,975 per US dollar in the market's close a day earlier.
Bank Indonesia (BI) would continue to watch the rupiah's volatility to prevent it from moving past Rp12,000 per US dollar, Rully Nova, a foreign exchange analyst of PT Bank Himpunan Saudara Tbk., said here on Friday.
The rupiah nosedived due to the market's pressure as the demand for the US greenback was high, he said.
The local currency tumbled because the US dollar supply in the domestic money market was decreasing, while the demand was high, he said. So far only BI, the country's central bank, which has released the US dollars in the domestic market, he added.
Market players needed dollars to buy bonds the US government had issued to raise fresh funds to boost economic growth, he said.
He expected the rupiah would continue to weaken in the first semester of 2009. However, he hoped the Indonesian currency would strengthen again in the second semester with the provision of the the US government's $787-billion stimulus package aimed to boost the US economic growth.
A better US economic growth would help improve the global economy and contribute positive sentiment to the Indonesian currency, he said.
BI would also continue to monitor activities of foreign banks actively trading the US greenback to prevent them from speculating, he said.
"We are optimistic that the rupiah will stay at the level of the Rp12,000 per US dollar, as BI will remain in the money market to monitor the Indonesian currency and make sure it will not excessively volatile," he said.