BI TO KEEP RUPIAH FROM EXTREME VOLATILITY

Jakarta, July 25 (ANTARA) - Bank Indonesia (BI or the central bank) will continue to keep the rupiah safe from extreme volatility, a BI executive said.

"Today we saw the national currency strengthen and perform positively in regional markets. We have been monitoring its developments since morning. We are watching its volatility. We let the markets' dynamism work. What matters is its volatility does not become extreme. Now it is rallying in a positive way against the currencies of other emerging markets," BI Deputy Governor Budi Mulya said here on Friday.

The rupiah strengthened against the US dollar in the Jakarta inter-bank spot market leaving the Rp10,000 level in line with continuing buying of rupiahs following improving regional markets.

The rupiah exchange rate stood at Rp9,983-Rp10,000 against the US dollar, up 40 points from yesterday's closing of Rp10,028-Rp10,035.

The rupiah's exchange middle rate against the US dollar at Bank Indonesia passed the Rp10,000 level on Friday standing at Rp9,995. A day before it stood at Rp10,063.

Money market observer Edwin Sinaga said market players were more optimistic towards the rupiah because the country's economy continued to grow providing better profits than in other countries.