RUPIAH WEAKENS AGAINST US DOLLAR EARLY WEDNESDAY

Jakarta, Sept. 2 (ANTARA) - The rupiah weakened against the US dollar in the Jakarta interbank spot market here on Wednesday morning as investors released the local currency.

The Indonesian currency traded at Rp10,120-Rp10,130 per US dollar, down 50 points at the market's close a day earlier.

The rupiah plunged as investors were waiting for economic indicators of several foreign countries, especially the United States. Rully Nova, domestic money market of PT Bank Himpunan Saudara Tbk., said here on Wednesday.

Investors were waiting for reports on the unemployment rate in the United States which was expected to increase, he said.

The expected rupiah depreciation was also due to the Wall Street losses and Indonesia's August 2009 inflation rate which was a slightly higher than a month earlier, he said.

The inflation rate which went up from 0.45 percent to 0.56 percent as reported by the Central Bureau of Statistics (BPS) also pressured the local currency.

Negative sentiment against the rupiah was quite strong, prompting the Indonesian currency to fall further, he said.

The Indonesian currency was expected to remain within a range of Rp10,120 to Rp10,150 during this week because the domestic money market tended to be negative, he said.

The rupiah would also be affected by the Bank Century case which implied losses to the state, he said. Therefore, investors were cautious in their activity in the domestic money market, he explained.

Investors released the rupiah and bought the US greenback while following reports on the Bank Century case, he said.

Meanwhile, the Composite Stock Price Index (IHSG) at the Indonesian Stock Exchange (BEI) here on Wednesday morning opened lower as regional bourses also slumped following Wall Street losses.

The Bei Index went down 33.805 points or 1.41 percent to 2,293.908 and the LQ-45 index dropped 6.920 points or 1.59 percent to 445.806 points.