ID :
26991
Tue, 10/28/2008 - 15:01
Auther :
Shortlink :
http://m.oananews.org//node/26991
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RUPIAH NOSEDIVES TO NEARLY RP12,000 PER DOLLAR EARLY TUESDAY
Jakarta, Oct. 28 (ANTARA) - The rupiah nosedived to nearly Rp12,000 per US dollar in the Jakarta interbank spot market on Tuesday morning, as market players were still in panic and buying huge amounts of US dollars over worries about the global financial crisis.
"The global financial turmoil which continues to pressure the money market is prompting market players to buy US dollars and causing the Indonesian currency to drop to nearly Rp12,000 per US dollar," Edwin Sinaga, a money market observer, said here on Tuesday.
The rupiah traded at Rp11,700/11,900 per US dollar, down 1,385 points from the previous day's close of Rp10,315/10,950 per US dollar.
Sinaga, president director of Finan Carpindo, said market players became more panic-stricken seeing the slumping down of regional stock markets and decided to buy US dollars in huge amounts.
In fact, the rupiah depreciated by around seven to eight percent while in other Asian countries such as Thailand and South Korea the local unit weakened by far more points, he said.
The rupiah's weakening was mainly due to the global turmoil therefore a stabilization effort should be given a priority to prevent the currency from plunging further, he said.
However, he was optimistic that foreign capital would flow into Indonesia's capital/stock market because shares in the capital market were overvalued.
Short- and long-term capital would enter Indonesia and help strengthen the rupiah, he said.
"Slowly, capital will come in. It's just a matter of confidence," he said.
Last weekend, the Association of Young Indonesian Businessmen (Hipmi) 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 global financial turmoil which continues to pressure the money market is prompting market players to buy US dollars and causing the Indonesian currency to drop to nearly Rp12,000 per US dollar," Edwin Sinaga, a money market observer, said here on Tuesday.
The rupiah traded at Rp11,700/11,900 per US dollar, down 1,385 points from the previous day's close of Rp10,315/10,950 per US dollar.
Sinaga, president director of Finan Carpindo, said market players became more panic-stricken seeing the slumping down of regional stock markets and decided to buy US dollars in huge amounts.
In fact, the rupiah depreciated by around seven to eight percent while in other Asian countries such as Thailand and South Korea the local unit weakened by far more points, he said.
The rupiah's weakening was mainly due to the global turmoil therefore a stabilization effort should be given a priority to prevent the currency from plunging further, he said.
However, he was optimistic that foreign capital would flow into Indonesia's capital/stock market because shares in the capital market were overvalued.
Short- and long-term capital would enter Indonesia and help strengthen the rupiah, he said.
"Slowly, capital will come in. It's just a matter of confidence," he said.
Last weekend, the Association of Young Indonesian Businessmen (Hipmi) 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.
