RUPIAH WEAKENS 35 POINTS AGAINST US DOLLAR

Jakarta, June 29 (ANTARA) - The rupiah tumbled against the US dollar at the Jakarta interbank spot market on Monday afternoon on increasing demand for the greenback.

The Indonesia currency traded at Rp10,255-Rp10,265 per US dollar, down 35 points from Rp10,220-Rp10,235 per US dollar at the market's close last Friday.

Demand for the local unit increased causing the Indonesian currency to come under pressure, Edwin Sinaga, president director of PT Finan Corpindo Nusa, said here on Monday.

He also said that the rupiah plunged because it was under pressure as the US dollar, euro and yen rose in Asian markets, while investors were waiting for reports on the US economy and the meeting of central banks in Europe.

The US dollar surged to 95.29 yen and the Euro fell to 1.4035 US dollars from 1.4064 dollars and to 133.71 yen from 133.95 yen.

According to him, investors are waiting for the data this week, focusing on the US employment report to get a clear picture of US economic recovery prospects.

They are also waiting for the result of a survey on Japan's business confidence.

However, he was optimistic that the rupiah would strengthen again, thanks to optimism that the national economic growth in the second semester of 2009 would improve.

Sinaga considered the rupiah's current position is safe and stable.

Meanwhile, on Monday morning, the rupiah surged 20 points against the US dollar in the Jakarta interbank spot market on profit taking moves.

The Indonesian currency traded at Rp10,200/10,215 per US dollar, up 20 from Rp10,220/10,235 per US dollar at the market's close last weekend.

The rupiah's continued surge could eventually make it approach the level of nearly Rp10,000 per US dollar, foreign exchange analyst Rully Nova of PT Bank Himpunan Saudara Tbk, said here early Monday.

Meanwhile, Fauzi Ichsan, an economist of Standard Chartered Bank, said the rupiah was estimated to reach the level of Rp9,500 at the end of this year.