RUPIAH WEAKENS 55 POINTS EARLY MONDAY

Jakarta, April 20 (ANTARA) - The rupiah fell in the Jakarta interbank spot market here on Monday morning but remained below Rp11,000 per US dollar as investors took profit after the rupiah's rally over the past weekend.

The Indonesian currency traded at Rp10,750/11,775 per US dollar, up 55 points, Rp10,695/10,700 per US dollar.
Farial Anwar, a money market observer, said here on Monday that the rupiah's depreciation was normal after the local unit had significantly surged over the past one week.
However, he believed that the rupiah still had a big chance to advance again.
"We are optimistic that the rupiah's fall is just temporary, because the positive sentiment is still high," he said.
The local currency could still strengthen approaching the level of Rp10,500 per US dollar, because of foreign capital inflow in a large amount especially from the Middle East, would again boost the rupiah, he said.
Besides, active trading at the domestic stock market also contributed positive sentiment to the money market, he said.
Following smooth and peaceful implementation of the legislative elections on last April 9, 2009, the upcoming presidential and vice presidential elections scheduled for July 8, 2009, was expected to be peaceful as well, he said.
"We are optimistic that money market and stock market are still positive because investors consider the Indonesian market could give better gains than in other Asian countries," he said.
Therefore, the depreciation of the rupiah was not worrying, and it was even good so the local currency's surge would not be too fast, he said.
If the rupiah continued to strengthen, exporters might be negatively affected and would ask the government to maintain the currency's stability, he said.
Indonesia's economic growth was relatively sound thanks to large amount of local and foreign funds being actively traded at the domestic market, he said.