ID :
34698
Tue, 12/09/2008 - 18:25
Auther :
Shortlink :
http://m.oananews.org//node/34698
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RUPIAH GAINS 780 POINTS LATE TUESDAY
Jakarta, Dec. 9 (ANTARA) - The rupiah gained significantly to below Rp11,000 per US dollar in the Jakarta interbank spot-market Tuesday afternoon on reports the US government was planning to bail out troubled US companies.
The rupiah was traded at Rp10,830/10,950, up 780 points from Rp11,600/Rp11,700 per US dollar late Tuesday.
"The measures of (president-elect) Barack Obama have received positive responses from currency markets because they are expected to help ease the pressures from the current global financial crisis," president director of Financ Corfindo Edwin Sinaga said here on Tuesday.
The local currency had strengthened since Tuesday morning thanks to a report on the US government's plan to bail out three US automotive industries. Previously, the US government had provided a US$700 billion bailout package for Citibank.
Bank Indonesia (BI) saw the condition as the right momentum to strengthen the rupiah further to reach a level of below Rp11,000 per US dollar. BI, the central bank, intervened in the market by releasing US dollars into the domestic money market, he said.
As a result, the rupiah gained significantly, he said.
However, he warned the strengthening of the rupiah should be safeguarded to prevent it from becoming a boomerang because a rapid and drastic appreciation could cause the local currency to fall again.
The rupiah was traded at Rp10,830/10,950, up 780 points from Rp11,600/Rp11,700 per US dollar late Tuesday.
"The measures of (president-elect) Barack Obama have received positive responses from currency markets because they are expected to help ease the pressures from the current global financial crisis," president director of Financ Corfindo Edwin Sinaga said here on Tuesday.
The local currency had strengthened since Tuesday morning thanks to a report on the US government's plan to bail out three US automotive industries. Previously, the US government had provided a US$700 billion bailout package for Citibank.
Bank Indonesia (BI) saw the condition as the right momentum to strengthen the rupiah further to reach a level of below Rp11,000 per US dollar. BI, the central bank, intervened in the market by releasing US dollars into the domestic money market, he said.
As a result, the rupiah gained significantly, he said.
However, he warned the strengthening of the rupiah should be safeguarded to prevent it from becoming a boomerang because a rapid and drastic appreciation could cause the local currency to fall again.
