RUPIAH WEAKENS TO OVER RP10,800 MONDAY AFTERNOON

Jakarta, April 27 (ANTARA) - The rupiah weakened to above Rp10,800 per US dollar in the Jakarta interbank spot market here on Monday afternoon as market players, especially state-owned companies, bought the greenback to pay their maturing debts.

The Indonesian currency traded at Rp10,835/10,845 per US dollar, down 55 points from Rp10,780/10,790 per US dollar at the market's close a day earlier.

President Director of PT Finan Corpindo Nusa Edwin Sinaga said here on Monday that the trading activities at the money market was still dominated by dollar purchases, as state companies (BUMN) usually had to buy the greenback to pay their mature debts.

The local currency, despite the loss however was till relatively safe as it was still at the level of below Rp11,000 per US dollar, because Bank Indonesia (BI, the country's central bank) would continue to stay at the money market to guard the rupiah and to prevent it from weakening further to the level of Rp11,000 per US dollar, he said.

"We are optimistic that the rupiah will still be protected by BI, moreover that BI has signed cooperation agreements with the Chinese and Japanese central banks about foreign exchange," he said.

According to him, the rupiah was at narrow range of between Rp10,700 and Rp11,000 per US dollar, which was every much preferred by exporters and importers as both tended to keep silent, he said.

The Indonesian currency still had a chance to strengthen if the April inflation rate was lower than that of the previous month, he said.

Besides, some banks, including BCA, have cut their interest rates of the consumption credits, which is expected to bolster the banking sector to be more active in channeling their credits to clients.

Foreign investors were still active at the Indonesian Stock Exchange, especially at shares of Middle East investors placing their funds in the Indonesian capital market, he said.

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