ID :
33562
Tue, 12/02/2008 - 15:31
Auther :
Shortlink :
http://m.oananews.org//node/33562
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RUPIAH NOSEDIVES EARLY TUESDAY
Jakarta, Dec. 2 (ANTARA) - The rupiah nosedived against the US dollar early Tuesday as demand for the greenback was high in the runup to the year-end season.
The rupiah was traded at Rp12,250/12,350 per US dollar, down 300 points from Rp11,950/Rp12,300 at the market's closing a day earlier.
The Indonesian currency could not retain its position at the level of below Rp12,000 per US dollar, PT Bank Mega Tbk.'s retail banking director, Kostaman Thayib, said here on Tuesday.
"Market players are worried about keeping the rupiah because it's not profitable in the long term. Therefore, they released the local currency when foreign investors again bought US dollars," he said.
The rupiah weakened due to the confidence factor, he said. People felt more confident keeping US dollars while demand for the greenback was high in foreign markets following the global financial crisis, he said.
The government, however, was still closely monitoring developments affecting the rupiah to protect it or prevent it from plunging further to nearly Rp13,000 per US dollar, he said.
He said the government was apparently supervising foreign banks' foreign currency trading tightly to ensure adequate supplies of the US dollar in the domestic market.
Besides, the government was also trying to attract Indonesian businessmen's funds deposited overseas in order to strengthen the rupiah, he said.
The rupiah was traded at Rp12,250/12,350 per US dollar, down 300 points from Rp11,950/Rp12,300 at the market's closing a day earlier.
The Indonesian currency could not retain its position at the level of below Rp12,000 per US dollar, PT Bank Mega Tbk.'s retail banking director, Kostaman Thayib, said here on Tuesday.
"Market players are worried about keeping the rupiah because it's not profitable in the long term. Therefore, they released the local currency when foreign investors again bought US dollars," he said.
The rupiah weakened due to the confidence factor, he said. People felt more confident keeping US dollars while demand for the greenback was high in foreign markets following the global financial crisis, he said.
The government, however, was still closely monitoring developments affecting the rupiah to protect it or prevent it from plunging further to nearly Rp13,000 per US dollar, he said.
He said the government was apparently supervising foreign banks' foreign currency trading tightly to ensure adequate supplies of the US dollar in the domestic market.
Besides, the government was also trying to attract Indonesian businessmen's funds deposited overseas in order to strengthen the rupiah, he said.
