ID :
51408
Thu, 03/19/2009 - 17:16
Auther :
Shortlink :
https://www.oananews.org//node/51408
The shortlink copeid
RUPIAH UP 70 POINTS AGAINST US DOLLAR LATE THURSDAY
Jakarta, March 19 (ANTARA) - The rupiah surged 75 points against the US dollar in the Jakarta interbank spot market Thursday afternoon because of a positive issue on the US Federal Reserve (The Fed)'s plan to buy long-term treasury bonds.
The Indonesian currency traded at Rp11,890/11,910 per US dollar, up 75 points from Rp11,960/11,975 at the market's close a day earlier.
Edwin Sinaga, a domestic money market observer, said The Fed's plan to buy treasury bonds worth US$300 billion would cause the US market to be flooded with the greenback.
The increase in US dollar stocks in money markets was likely cause the greenback to tumble against other currencies, he said.
The Fed's plan to spend up to $300 billion over the next six months to buy long-term government bonds would create a stronger positive support for the Indonesian currency, he said.
The Fed's plan was a new step aimed at lifting the US out of recession by lowering rates on mortgages and other consumer debt.
Sinaga believed that the rupiah had a chance to strengthen further to the level of Rp11,500 per US dollar because Bank Indonesia kept on supervising foreign currency trading by foreign banks in the country.
Early Thursday, the rupiah gained 65 points and traded at Rp11,900/11,950 per US dollar.
The Indonesian currency traded at Rp11,890/11,910 per US dollar, up 75 points from Rp11,960/11,975 at the market's close a day earlier.
Edwin Sinaga, a domestic money market observer, said The Fed's plan to buy treasury bonds worth US$300 billion would cause the US market to be flooded with the greenback.
The increase in US dollar stocks in money markets was likely cause the greenback to tumble against other currencies, he said.
The Fed's plan to spend up to $300 billion over the next six months to buy long-term government bonds would create a stronger positive support for the Indonesian currency, he said.
The Fed's plan was a new step aimed at lifting the US out of recession by lowering rates on mortgages and other consumer debt.
Sinaga believed that the rupiah had a chance to strengthen further to the level of Rp11,500 per US dollar because Bank Indonesia kept on supervising foreign currency trading by foreign banks in the country.
Early Thursday, the rupiah gained 65 points and traded at Rp11,900/11,950 per US dollar.
