ID :
26862
Mon, 10/27/2008 - 15:23
Auther :
Shortlink :
http://m.oananews.org//node/26862
The shortlink copeid
RUPIAH PLUNGES TO RP10,470 PER DOLLAR EARLY MONDAY
Jakarta, Oct 27 (ANTARA) - The rupiah plunged to nearly Rp10,500 per dollar in the Jakarta interbank spot market on Monday morning as market players panicked over worries over the current global financial crisis.
The rupiah traded at Rp10,470/10,480 per dollar early Monday compared to last weekend's close of Rp9,963/10,250 per dollar, down 367 points points.
Market players became more panic-stricken and bought US dollars in big amounts due to the global financial turmoil which continued to impact on the market, according to Edwin Sinaga, a financial market observer here on Monday.
They were worried that such a market condition could continue although central banks had jointly injected fresh funds into the money markets to maintain the market's liquidity, he said.
According to him, the fresh funds injected by a number of central banks had not positively affected the market because it was done just a few days ago while the financial crisis was a global problem.
"I am afraid the rupiah will continue to plunge further to far more than Rp10,500 per US dollar," he said.
The rupiah slumping down was estimated to be left to the market because it would be hard for the Indonesian central bank, Bank Indonesia (BI), to deal with it, he said.
The rupiah's weakening would also affect the domestic industrial sector especially companies which have to import raw materials for their products.
"We hope that BI can prevent the market pressure on the rupiah from growing stronger, although it is not intervening in the market now due to the high market pressure," he said.
Meanwhile, the Association of Young Indonesian Businessmen (Hipmi) on Friday urged the government and Bank Indonesia (the central bank/BI) to take joint steps to halt the rupiah's depreciation against the US dollar.
The rupiah's current movement was worrying and thus, measures were needed to reverse the trend, Hipmi Chairman Erwin Aksa said.
"But neither the public nor businesspeople should panic," he said.
The local unit hit the psychological level of Rp10,000 per dollar late Friday. It closed lower at Rp10,005 per dollar.
The rupiah traded at Rp10,470/10,480 per dollar early Monday compared to last weekend's close of Rp9,963/10,250 per dollar, down 367 points points.
Market players became more panic-stricken and bought US dollars in big amounts due to the global financial turmoil which continued to impact on the market, according to Edwin Sinaga, a financial market observer here on Monday.
They were worried that such a market condition could continue although central banks had jointly injected fresh funds into the money markets to maintain the market's liquidity, he said.
According to him, the fresh funds injected by a number of central banks had not positively affected the market because it was done just a few days ago while the financial crisis was a global problem.
"I am afraid the rupiah will continue to plunge further to far more than Rp10,500 per US dollar," he said.
The rupiah slumping down was estimated to be left to the market because it would be hard for the Indonesian central bank, Bank Indonesia (BI), to deal with it, he said.
The rupiah's weakening would also affect the domestic industrial sector especially companies which have to import raw materials for their products.
"We hope that BI can prevent the market pressure on the rupiah from growing stronger, although it is not intervening in the market now due to the high market pressure," he said.
Meanwhile, the Association of Young Indonesian Businessmen (Hipmi) on Friday urged the government and Bank Indonesia (the central bank/BI) to take joint steps to halt the rupiah's depreciation against the US dollar.
The rupiah's current movement was worrying and thus, measures were needed to reverse the trend, Hipmi Chairman Erwin Aksa said.
"But neither the public nor businesspeople should panic," he said.
The local unit hit the psychological level of Rp10,000 per dollar late Friday. It closed lower at Rp10,005 per dollar.
