ID :
11817
Mon, 07/07/2008 - 16:43
Auther :
Shortlink :
http://m.oananews.org//node/11817
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RUPIAH MOVES CLOSER TO RP9,200 PER DOLLAR
Jakarta, July 7 (ANTARA) - The rupiah moved closer to Rp9,200 per dollar in the Jakarta interbank spot market on Monday morning as investors rushed for the local unit following Bank Indonesia (BI)'s move to raise its benchmark interest rate to 8.75 percent last week.
"BI's decision to raise its key rate by 25 basis points to 8.75 percent from 8.50 percent previously has led to a rush for the rupiah," Kostaman Thayib, retail banking director of PT Bank Mega Tbk, said on Monday.
The rupiah was trading Rp9,204/9,205 per dollar on Monday morning compared to the weekend closure of Rp9,213/9,219 per dollar, or an increase of nine points.
He said the rupiah received another boost as foreign investors rushed for state bonds so that state-owned companies' demand for the US greenback could be met quickly.
"We are optimistic the rupiah still has a chance to strengthen to up to Rp9,200 per dollar on Monday evening," he said.
Earlier, the rupiah slightly strengthened by three points to Rp9,210 from Rp9,213 per dollar and moved closer to Rp9,200 per dollar as investors bought up the Indonesian currency, he said.
He asked monetary authorities to be wary of the rupiah's faster-than-expected appreciation for fear it would cause the rupiah to plunge more quickly.
"BI's decision to raise its key rate by 25 basis points to 8.75 percent from 8.50 percent previously has led to a rush for the rupiah," Kostaman Thayib, retail banking director of PT Bank Mega Tbk, said on Monday.
The rupiah was trading Rp9,204/9,205 per dollar on Monday morning compared to the weekend closure of Rp9,213/9,219 per dollar, or an increase of nine points.
He said the rupiah received another boost as foreign investors rushed for state bonds so that state-owned companies' demand for the US greenback could be met quickly.
"We are optimistic the rupiah still has a chance to strengthen to up to Rp9,200 per dollar on Monday evening," he said.
Earlier, the rupiah slightly strengthened by three points to Rp9,210 from Rp9,213 per dollar and moved closer to Rp9,200 per dollar as investors bought up the Indonesian currency, he said.
He asked monetary authorities to be wary of the rupiah's faster-than-expected appreciation for fear it would cause the rupiah to plunge more quickly.
