RUPIAH FALLS PAST RP12,000 PER DOLLAR

Jakarta, Feb 27 (ANTARA) - The rupiah fell past Rp12,000 per dollar in the Jakarta interbank spot market late Friday on higher demand for the greenback despite a report the government had issued US$3 billion worth of global medium term notes.
The rupiah closed at Rp12,065/12,095 per dollar on Friday compared to Rp12,030/12,055 the day before, down 35 points.
Investors continued to buy the dollar as they believed the greenback was the safe currency into which to deposit their money, Retail Banking Director of PT Bank Mega Tbk Kostaman Thayib said.
The rush for the dollar was mainly caused by investors' worries about the prospects of the planned US stimulus package which had not yet been approved by the Congress, he said.
Investors seemed to ignore such positive internal factors as the issuance of US$3 billion global medium term notes which are enough to cover part of the 2009 state budget deficit and increase the country's foreign exchange reserves, he said.
Given the current instability of the global financial market, the issuance of the dollar-denominated bonds was quite a success, he said adding the bonds had been oversubscribed twice.
The issuance of the global bonds was sending a signal favorable for the rupiah's movements in the market, he said.