ID :
28171
Mon, 11/03/2008 - 15:25
Auther :
Shortlink :
http://m.oananews.org//node/28171
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RUPIAH UP 225 POINTS EARLY MONDAY
Jakarta, Nov. 3 (ANTARA) - The rupiah strengthened against the US dollar in the Jakarta inter-bank spot market early Monday as market players were optimistic that the inflation rate in October expected to be announced soon will be lower than a month earlier, a money market observer said.
The rupiah rose 225 points to Rp10,750/10,850 per dollar from Rp10,975/10,995 per dollar when it closed at the last weekend.
The rupiah strengthened due to profit-taking by market players, president director of Finance Corpindo Edwin Sinaga said here on Monday.
"We are optimistic that they will continue to release dollars, so the rupiah may strengthen further in the afternoon," he said.
Market players were also waiting to see whether Bank Indonesia (BI, the central bank), would again raise the BI rate which currently stands at 9.50 percent.
If the central bank does not raise its key rate, the currently-tight economic growth may get better, he said.
The banking and business sectors also expected BI to refrain from increasing its key rate, especially when inflationary pressure in October 2008 was not very strong, he said.
Central banks in a number of countries had cut their key rates to boost economic growth due to the market's tight liquidity, he said.
However, Indonesia is still considered a potential market currently, as foreign investors are expected to invest their capital in the domestic market.
Despite a high balance of the rupiah and dollar interest rate, the Indonesian economy continued to grow although it tended to be lower than a year earlier, he said.
The rupiah rose 225 points to Rp10,750/10,850 per dollar from Rp10,975/10,995 per dollar when it closed at the last weekend.
The rupiah strengthened due to profit-taking by market players, president director of Finance Corpindo Edwin Sinaga said here on Monday.
"We are optimistic that they will continue to release dollars, so the rupiah may strengthen further in the afternoon," he said.
Market players were also waiting to see whether Bank Indonesia (BI, the central bank), would again raise the BI rate which currently stands at 9.50 percent.
If the central bank does not raise its key rate, the currently-tight economic growth may get better, he said.
The banking and business sectors also expected BI to refrain from increasing its key rate, especially when inflationary pressure in October 2008 was not very strong, he said.
Central banks in a number of countries had cut their key rates to boost economic growth due to the market's tight liquidity, he said.
However, Indonesia is still considered a potential market currently, as foreign investors are expected to invest their capital in the domestic market.
Despite a high balance of the rupiah and dollar interest rate, the Indonesian economy continued to grow although it tended to be lower than a year earlier, he said.
