ID :
18181
Fri, 09/05/2008 - 19:48
Auther :
Shortlink :
http://m.oananews.org//node/18181
The shortlink copeid
RUPIAH FALLS TO RP9,350 PER DOLLAR LATE FRIDAY
Jakarta, Sept 5 (ANTARA) - The rupiah plunged to Rp9,350 per dollar in the Jakarta interbank spot market late Friday as demand for the US greenback kept rising throughout the day.
"Demand for the dollar rose due to a fall in global crude prices to US$107 per barrel, causing the rupiah to plunge," Retail Banking Director of PT Bank Mega Tbk. Kostaman Thayib said here Friday.
The negative market upheaval would prompt the rupiah to fall to up to Rp9,400 per dollar, he said.
"We believe the rupiah will fall to nearly Rp9,400 per dollar," he said.
He said Bank Indonesia (the central bank/BI) would likely intervene in the money market to prevent the local unit from falling further.
BI would release funds from its foreign exchange reserves. Otherwise, it would be difficult to control the rupiah's continuing fall, he said.
From the standpoint of economic fundamentals, the government did not have any problem. With the recent drop in global crude prices, the economy would grow at a faster pace, he said.
"We believe the rupiah is falling because of panic in the market following a drop in global crude prices," he said.
Market pressures grew stronger after fund managers released their shares in the capital market and bought the US greenback to offset the losses they had suffered.
BI has raised its benchmark interest rate to 9.25 percent from 9 percent previously to curb the accelerating inflation rate expected to reach 12 percent this year, he said.
Actually, the rise in the key rate had nothing to do with the rupiah's depreciation. The Indonesian currency fell due to an outflow of foreign capital, he said.
"Demand for the dollar rose due to a fall in global crude prices to US$107 per barrel, causing the rupiah to plunge," Retail Banking Director of PT Bank Mega Tbk. Kostaman Thayib said here Friday.
The negative market upheaval would prompt the rupiah to fall to up to Rp9,400 per dollar, he said.
"We believe the rupiah will fall to nearly Rp9,400 per dollar," he said.
He said Bank Indonesia (the central bank/BI) would likely intervene in the money market to prevent the local unit from falling further.
BI would release funds from its foreign exchange reserves. Otherwise, it would be difficult to control the rupiah's continuing fall, he said.
From the standpoint of economic fundamentals, the government did not have any problem. With the recent drop in global crude prices, the economy would grow at a faster pace, he said.
"We believe the rupiah is falling because of panic in the market following a drop in global crude prices," he said.
Market pressures grew stronger after fund managers released their shares in the capital market and bought the US greenback to offset the losses they had suffered.
BI has raised its benchmark interest rate to 9.25 percent from 9 percent previously to curb the accelerating inflation rate expected to reach 12 percent this year, he said.
Actually, the rise in the key rate had nothing to do with the rupiah's depreciation. The Indonesian currency fell due to an outflow of foreign capital, he said.
