RUPIAH SLIGHTLY WEAKENS AGAINST US DOLLAR

Jakarta, Oct. 7 (ANTARA) - The rupiah slightly weakened against the US dollar in the Jakarta interbank spot market here on Wednesday morning.

The Indonesian currency traded at Rp9,457-Rp9,465 per US dollar, down 17 points from Rp9,440-Rp9,450 at the market's close a day earlier.

The rupiah's depreciation was normal after it had earlier strengthened significantly, Kostaman Thayib, retail banking director of PT Bank Mega Tbk, said here on Wednesday.

The rupiah's fall was quite positive because a rapid increase in the Rupiah exchange rate could negatively affect local products in export markets, he said.

The local currency, however, was expected to move upward again thanks to a positive external factor, such as a Wall Street rally, which had boosted regional bourses, he said
Thayib expressed optimism that the rupiah would soon strengthen again although it had weakened following profit taking moves.

The Indonesian currency was predicted to reach the level of below Rp9,300 per US dollar because there market sentiment was still positive, he said.

"We hope that the rupiah will continue to strengthen until it will reach the level of Rp9,000 per US dollar at the end of the year," he said.