ID :
82104
Mon, 09/28/2009 - 12:53
Auther :
Shortlink :
https://www.oananews.org//node/82104
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RUPIAH WEAKENS AGAINST US DOLLAR ON NEGATIVE MARKET SENTIMENT
Jakarta, Sept. 28 (ANTARA) - The rupiah weakened against the US dollar in the Jakarta interbank spot market here on Monday morning on negative market sentiment following regional bourse losses.
The Indonesian currency traded at Rp9,715-Rp9,725 per US dollar, down 65 points from the market's close last weekend.
The rupiah's position below the level of Rp10,000 per US dollar was still sound, Edwin Sinaga, a domestic money market observer, said here on Monday.
The local unit depreciated due to the absence of positive internal and external factors, Sinaga, president director of PT Finan Corfindo, said.
However, he believed the rupiah still had a chance to move upward again because foreign investors were still keenly interested in returning to the domestic market, given that the rupiah's interest rate was still better than the US dollar's which was nearly zero percent, he said.
"We are optimistic the rupiah will strengthen again. It's just a matter of waiting for foreign investors to return to Indonesia to be active again in the stock and money markets," he said.
He predicted the local currency would continue to be under pressure in afternoon trading as investors were still cautious in entering the money market.
The Composite Stock Price Index (IHSG) at the Indonesian Stock Exchange (BEI) here on Monday morning opened lower on Wall Street losses.
The BEI index lost 23.434 points or 0.98 percent to 2,424.129 points and the LQ-45 index fell 5.726 or 1.21 percent to 472,596.66 points.
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The Indonesian currency traded at Rp9,715-Rp9,725 per US dollar, down 65 points from the market's close last weekend.
The rupiah's position below the level of Rp10,000 per US dollar was still sound, Edwin Sinaga, a domestic money market observer, said here on Monday.
The local unit depreciated due to the absence of positive internal and external factors, Sinaga, president director of PT Finan Corfindo, said.
However, he believed the rupiah still had a chance to move upward again because foreign investors were still keenly interested in returning to the domestic market, given that the rupiah's interest rate was still better than the US dollar's which was nearly zero percent, he said.
"We are optimistic the rupiah will strengthen again. It's just a matter of waiting for foreign investors to return to Indonesia to be active again in the stock and money markets," he said.
He predicted the local currency would continue to be under pressure in afternoon trading as investors were still cautious in entering the money market.
The Composite Stock Price Index (IHSG) at the Indonesian Stock Exchange (BEI) here on Monday morning opened lower on Wall Street losses.
The BEI index lost 23.434 points or 0.98 percent to 2,424.129 points and the LQ-45 index fell 5.726 or 1.21 percent to 472,596.66 points.
***2***
