RUPIAH'S EXCHANGE RATE AGAINST US DOLLAR STABLE

Jakarta, Aug. 26 (ANTARA) - The rupiah tended to be stable against the US dollar in the Jakarta interbank spot market here on Wednesday morning because of lack of positive sentiment in the market.

The Indonesian currency traded at Rp9,995-Rp10,015 per US dollar.

The transaction of the two currencies were within a narrow range as there were hardly positive sentiment in the local domestic market, Rully Nova, a foreign exchange analyst of PT Bank Himpunan Saudara Tbk, said here on Wednesday.

He predicted that the rupiah would strengthen again in the afternoon trading as regional bourses had gained and positively affected the Indonesian Stock Exchange (BEI).

Being supported by external factors, the local currency still had a chance to move upward. It was especially because investors were optimistic that the US economy would grow following the decision of US President Obama to renominate Ben Bernanke as chief of the Federal Reserve for the second term.

Besides, the US government has also offered bonds to attract funds in an effort to boost a bigger economic growth, he said.

Meanwhile, the Composite Stock Price Index (IHSG) at the Indonesian Stock Exchange (BEI) here on Wednesday morning opened slightly lower on profit taking moves.

The BEI index went down 0.07 percent or 0.948 points to 2,381.467 and the LQ-45 index fell 0.,13 percent or 0.561 points to 464.559.

The Jakarta stocks were under pressure as investors released their shares to take profits after rallies over the past two days, Alfiansyah, a stock exchange broker of PT Sinarmas Securities, said.