RUPIAH GAINS EARLY THURSDAY ON BI RATE CUT

Jakarta, Mar 5 (ANTARA) - The rupiah surged 60 points against the US dollar in the Jakarta interbank spot market here on early Thursday, following Bank Indonesia (BI)'s decision to cut its key rate (BI Rate) from 8.25 percent to 7.75 percent.

The Indonesian currency traded at Rp12,090/12,110 per US dollar, from Rp12,150/12,160 in the market's close a day earlier.
The central bank's rate cut gave positive sentiment to the rupiah, which had been under pressure lately on high demand of the greenback, Rully Nova, foreign currency analyst of PT Bank Himpunan Saudara Tbk., said here on Thursday.
Another positive sentiment in the domestic currency market was a report on new loan from the World Bank aimed at increasing Indonesia's foreign exchange reserves and boost the national economic growth estimated to be at the rate of only four percent, he said.
The domestic money market might continue to be positive toward the local currency on word that China would announce an additional stimulus package in the annual meeting of its legislative body on Thursday, aimed at boosting its economic growth expected to be 8 percent.
Indonesia would also keep looking for fresh funds though bond sales at home as well as overseas to foster the economic growth rate at over 5 percent, he said.