ID :
72928
Thu, 07/30/2009 - 15:01
Auther :
Shortlink :
https://www.oananews.org//node/72928
The shortlink copeid
RUPIAH TUMBLES AS MARKET SEARCHES FOR NEW BALANCE
Jakarta, July 30 (ANTARA) - The rupiah tumbled against the US dollar at the Jakarta interbank spot market here on Thursday morning as the market was in a process to find a new balance.
The Indonesian currency traded at Rp9,985 per US dollar, down 35 basis points from that at the market's close a day earlier.
The local currency had depreciated over the past two days on a new market balance search, Edwin Sinaga, a domestic money market observer, said.
"Our rupiah is too strong, it's time to look for a market balance, and the direction is toward Rp10,000 per US dollar," Edwin Sinaga said.
The rupiah had earlier strengthened to Rp9,915 per US dollar, but later it weakened again to the level of Rp9,985 per US dollar, he said.
"This condition is still normal because the market condition earlier strengthened and now it's time for correction," he said.
He said the rupiah's plunge was not due to the return of foreign investors who had earlier been out from Indonesia.
"No, if foreign investors left Indonesia, the depreciation of the rupiah should have been significant," he said.
He was optimistic that foreign investors remained in Indonesia, as seen at the Indonesian Stock Exchange, where the composite stock price index (IHSG) continued to rally.
"IHSG continues to surge thanks to investors' optimism toward Indonesia's market," he said.
The IHSG in the Thursday morning trading opened 19,947 points or 0.90 percent higher to the position of 2,245.760 points.
In the morning trading, the rupiah weakened not only against the US greenback, but also other Asian countries' currencies.
The Indonesian currency plunged 0.55 basis points to Rp105.19 against yen (Japan). The rupiah fell 32.27 basis points to Rp6,903.81 against the Singapore dollar.
Against the Australian dollar, the local unit weakened 34.59 points to Rp8,164.73 per Australian dollar. And the rupiah dropped 68.82 points to Rp14,033.75 per euro.
The Indonesian currency traded at Rp9,985 per US dollar, down 35 basis points from that at the market's close a day earlier.
The local currency had depreciated over the past two days on a new market balance search, Edwin Sinaga, a domestic money market observer, said.
"Our rupiah is too strong, it's time to look for a market balance, and the direction is toward Rp10,000 per US dollar," Edwin Sinaga said.
The rupiah had earlier strengthened to Rp9,915 per US dollar, but later it weakened again to the level of Rp9,985 per US dollar, he said.
"This condition is still normal because the market condition earlier strengthened and now it's time for correction," he said.
He said the rupiah's plunge was not due to the return of foreign investors who had earlier been out from Indonesia.
"No, if foreign investors left Indonesia, the depreciation of the rupiah should have been significant," he said.
He was optimistic that foreign investors remained in Indonesia, as seen at the Indonesian Stock Exchange, where the composite stock price index (IHSG) continued to rally.
"IHSG continues to surge thanks to investors' optimism toward Indonesia's market," he said.
The IHSG in the Thursday morning trading opened 19,947 points or 0.90 percent higher to the position of 2,245.760 points.
In the morning trading, the rupiah weakened not only against the US greenback, but also other Asian countries' currencies.
The Indonesian currency plunged 0.55 basis points to Rp105.19 against yen (Japan). The rupiah fell 32.27 basis points to Rp6,903.81 against the Singapore dollar.
Against the Australian dollar, the local unit weakened 34.59 points to Rp8,164.73 per Australian dollar. And the rupiah dropped 68.82 points to Rp14,033.75 per euro.
