RUPIAH STRENGTHENS AGAINST US DOLLAR

Jakarta, Oct. 15 (ANTARA) - The rupiah strengthened against the US dollar in the Jakarta interbank spot market here on Thursday morning on continued Wall Street rallies.

The Indonesian currency traded Rp9,285-Rp9,295 per US dollar, up 80 points from Rp9,365-Rp9,375 per US dollar at the market's close a day earlier.

The local unit continued to gain thanks to the rallies at Wall Street which boosted the Dow Jones index to the psychological level of 10,000 points, Fauzi Ichsan, an economist of Standard Chartered Bank, said here on Thursday.

He believed that the rupiah would reach the level of Rp9,000 per US dollar.

The rupiah, however, needed strong support, especially because Bank Indonesia (BI, the country's central bank) was expected to enter the market and release dollars , Fuazi Ichsan said.

Compared to other Asian currencies, the rupiah gained most significantly as foreign investors were very active in the domestic market, he said.

Foreign investors put their funds in the Indonesian market which gave them more profits than other Asian markets, he said.

The Indonesian currency would settle within a range of between Rp9,280 and Rp9,300 per US dollar, Fauzi Ichsan said.

He believed that the rupiah would move upward further in the days ahead as external positive issues were getting stronger, he said.

The rupiah also got positive support from the Indonesian Stock Market (BEI) where the index reached the psychological level of 2,500 points, he said.