ID :
86856
Fri, 10/30/2009 - 15:45
Auther :
Shortlink :
https://www.oananews.org//node/86856
The shortlink copeid
RUPIAH STRENGTHENS 50 POINTS AGAINST DOLLAR
Jakarta, Oct 30 (ANTARA) - The rupiah strengthened by 50 points against the US dollar in the Jakarta interbank spot market on Friday as market players began buying the local unit and US stocks rose on data showing better performance of the US economy in the third quarter.
The rupiah`s exchange rate against the U.S. dollar strengthened to Rp9.535-Rp9.545 per dollar or by 50 points from Rp9.585-Rp9.595 at the market`s close on Thursday.
Kostaman Thayib, retail banking director of PT Bank Mega Tbk, said an increase in the Dow Jones Industrial Average by 2.05 percent caused a sharp rise in the Indonesia stock exchange index.
These conditions also encouraged the rupiah to strengthen, although the increase was somewhat restrained by players who still wanted to buy dollars, he said.
Stocks on Wall Street were expected to continue to gain so that the rupiah would likewise keep on strengthening until it reached below Rp9.500 per dollar.
"We are optimistic that a positive sentiment will again prevail in the market because Wall Street experienced a big enough gain," he said.
The rupiah`s appreciation was also supported by the Bank Indonesia (BI)`s entry into the market where it released dollars from its foreign exchange reserves on fear the rupiah would sink further.
Therefore, he said, the rupiah`s present appreciation was a quite appropriate development.
He said the local unit`s appreciation was also supported by government efforts to show that Indonesia`s macro economic fundamentals were relatively sound. So there were no internal problems while external sentiments were positive.
Asked about the rupiah`s correction a few days ago, he said it was caused by foreign players switching their funds to dollar purchases after the foreign currency slumped.
Foreigners bought up the greenback in order to sell them again later at a profit, he said.
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The rupiah`s exchange rate against the U.S. dollar strengthened to Rp9.535-Rp9.545 per dollar or by 50 points from Rp9.585-Rp9.595 at the market`s close on Thursday.
Kostaman Thayib, retail banking director of PT Bank Mega Tbk, said an increase in the Dow Jones Industrial Average by 2.05 percent caused a sharp rise in the Indonesia stock exchange index.
These conditions also encouraged the rupiah to strengthen, although the increase was somewhat restrained by players who still wanted to buy dollars, he said.
Stocks on Wall Street were expected to continue to gain so that the rupiah would likewise keep on strengthening until it reached below Rp9.500 per dollar.
"We are optimistic that a positive sentiment will again prevail in the market because Wall Street experienced a big enough gain," he said.
The rupiah`s appreciation was also supported by the Bank Indonesia (BI)`s entry into the market where it released dollars from its foreign exchange reserves on fear the rupiah would sink further.
Therefore, he said, the rupiah`s present appreciation was a quite appropriate development.
He said the local unit`s appreciation was also supported by government efforts to show that Indonesia`s macro economic fundamentals were relatively sound. So there were no internal problems while external sentiments were positive.
Asked about the rupiah`s correction a few days ago, he said it was caused by foreign players switching their funds to dollar purchases after the foreign currency slumped.
Foreigners bought up the greenback in order to sell them again later at a profit, he said.
***2***
