RUPIAH STRENGTHENS AGAINST US DOLLAR

Jakarta, Nov. 25 (ANTARA) - The rupiah strengthened against the US dollar in the Jakarta interbank spot market here on Wednesday morning as investors released their greenback and bought the local unit.

The Indonesian currency traded Rp9,460-Rp9,475 per US dollar, up 15 points from Rp9,475-Rp9,490 at the market close a day earlier.

Investors were still cautious of being active in the domestic money market, according to Edwin Sinaga, the president director of PT Finan Corpindo Nusa.

They still followed closely the political developments in the country and they wanted to know the next steps of the attorney general after the national police chief made some changes in the national police leadership, he said.

President Susilo Bambang Yudhoyono in his speech last Monday evening asked the national police and the attorney general to reform their institutions, in response to the recommendations made by the Team of Eight.

Sinaga optimistic that the rupiah would further move upward if the attorney general took a similar step taken by the national police chief.

He also believed that the rupiah would reach the level of below Rp9,400 per US dollar thanks to the continued positive sentiment of the external market.

Another factor which bolstered the local currency was the improving economic fundamental factor of Indonesia. Indonesia's economic growth was expected to reach between 5.4 and 5.9 percent in 2010, he said. *