ID :
27323
Wed, 10/29/2008 - 18:18
Auther :
Shortlink :
http://m.oananews.org//node/27323
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RUPIAH UP 200 POINTS TO RP10,600 PER DOLLAR WEDNESDAY AFTERNOON
Jakarta, Oct 29 (ANTARA) - The rupiah strengthened by 200 points to Rp10,600/10,800 per dollar in the Jakarta interbank spot market on Wednesday afternoon from Rp10,800/11,315 after Bank Indonesia (BI) intervened by releasing dollars into the market.
"The central bank intervention and its tight supervision on foreign banks' speculative foreign exchange buying have driven up the rupiah's value though its position is still over Rp10,000 per dollar," said foreign exchange analyst Rully Nova of PT Bank Himpunan Saudara here on Wednesday.
Nova said BI was afraid that the rupiah would plunge further unless it took measures to ease the pressures on the market.
The government has also appealed to investors to refrain from speculative dollar buying in order to prevent greater panic in the market.
He said though the rupiah nosedived to Rp12,000 on Tuesday, its strengthening this evening showed the government's success in coping with the market turmoil.
The rupiah on Tuesday dropped to Rp11,900 per dollar, its lowest level in the past seven years. Both the government and the central bank have agreed to take a series of measures to bolster foreign exchange reserves and market confidence.
The central bank also had been tightly controlling foreign banks believed to have be engaged in foreign currency trading, he said.
Retail Banking Director of PT Bank Mega Tbk Kostaman Thayib said meanwhile that the government must be able to persuade investors not to withdraw their funds put in state bonds and Bank Indonesia short-term promissory notes (SBI).
The move was expected to avoid market panic that might prompt investors to sell the BI instruments they were holding, he said.
Indonesia is one of the nations that are still able to weather the current global financial crisis as its national economy was continuing to grow, he said.
The global financial crisis was still putting the market under pressure and Indonesia was having some difficulty dealing with the negative market pressure, he said.
"We are optimistic that the government will take positive steps to prevent the rupiah from depreciating further," he said.
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"The central bank intervention and its tight supervision on foreign banks' speculative foreign exchange buying have driven up the rupiah's value though its position is still over Rp10,000 per dollar," said foreign exchange analyst Rully Nova of PT Bank Himpunan Saudara here on Wednesday.
Nova said BI was afraid that the rupiah would plunge further unless it took measures to ease the pressures on the market.
The government has also appealed to investors to refrain from speculative dollar buying in order to prevent greater panic in the market.
He said though the rupiah nosedived to Rp12,000 on Tuesday, its strengthening this evening showed the government's success in coping with the market turmoil.
The rupiah on Tuesday dropped to Rp11,900 per dollar, its lowest level in the past seven years. Both the government and the central bank have agreed to take a series of measures to bolster foreign exchange reserves and market confidence.
The central bank also had been tightly controlling foreign banks believed to have be engaged in foreign currency trading, he said.
Retail Banking Director of PT Bank Mega Tbk Kostaman Thayib said meanwhile that the government must be able to persuade investors not to withdraw their funds put in state bonds and Bank Indonesia short-term promissory notes (SBI).
The move was expected to avoid market panic that might prompt investors to sell the BI instruments they were holding, he said.
Indonesia is one of the nations that are still able to weather the current global financial crisis as its national economy was continuing to grow, he said.
The global financial crisis was still putting the market under pressure and Indonesia was having some difficulty dealing with the negative market pressure, he said.
"We are optimistic that the government will take positive steps to prevent the rupiah from depreciating further," he said.
***2***
