ID :
29701
Tue, 11/11/2008 - 23:51
Auther :
Shortlink :
http://m.oananews.org//node/29701
The shortlink copeid
RUPIAH EDGES CLOSER TO RP11,500 PER DOLLAR LATE TUESDAY
Jakarta, Nov 11 (ANTARA) - The rupiah edged closer to Rp11,500 per dollar in the Jakarta interbank spot market late Tuesday on the government's difficulties to deal with the impact of the global financial turmoil, a foreign exchange analyst said.
The government found it increasingly difficult to face the global financial turmoil although Bank Indonesia (the central bank/BI) had intervened in the money market, Rully Nova of PT Bank Himpunan Saudara Tbk said.
It seemed the central bank would intervene in the market only when the local unit came under strong pressure, he said.
Moreover, the country's foreign exchange reserves continued to decline because of the market intervention to prevent a further slump in the rupiah's exchange rate, he said.
The rupiah closed lower at Rp11,330/11,380 per dollar late Tuesday against Rp11,000/11,100 per dollar the day before, down 330 points.
Rully predicted the rupiah might hit Rp12,000 per dollar later this week, except if BI again raised its benchmark interest rate by 1-2 percent.
The problem was that whether or not the central bank had the guts to raise the key rate by that percentage because the higher key rate would have an adverse impact on the economic growth, he said.
The government found it increasingly difficult to face the global financial turmoil although Bank Indonesia (the central bank/BI) had intervened in the money market, Rully Nova of PT Bank Himpunan Saudara Tbk said.
It seemed the central bank would intervene in the market only when the local unit came under strong pressure, he said.
Moreover, the country's foreign exchange reserves continued to decline because of the market intervention to prevent a further slump in the rupiah's exchange rate, he said.
The rupiah closed lower at Rp11,330/11,380 per dollar late Tuesday against Rp11,000/11,100 per dollar the day before, down 330 points.
Rully predicted the rupiah might hit Rp12,000 per dollar later this week, except if BI again raised its benchmark interest rate by 1-2 percent.
The problem was that whether or not the central bank had the guts to raise the key rate by that percentage because the higher key rate would have an adverse impact on the economic growth, he said.
