Sunday, November 8, 2009

Indonesia's currency 'Rupiah' strengthens against US dollar

The rupiah strengthened against the US dollar in the Jakarta interbank spot market here on Monday morning as investors hunted the local unit.

The Indonesian currency traded Rp9,405-Rp9,415 per US dollar, up 35 points from Rp9,440-Rp9,455 per US dollar at the market`s close at the end of last week.

The rupiah gained as foreign investors were active in the domestic market, according to Rully Nova, a foreign exchange analyst of PT Bank Himpunan Saudara Tbk.

However, foreign investors were still worried about the ongoing rivalry between the National Police and the Corruption Eradication Commission (KPK) which was not showing signs of resolution, prolong, he said.

Foreign investors were closely following developments in a number of high-profile cases happening in Indonesia, especially the Bank Century bail out case, he said.

Problematic Bank Century has changed its name into Bank Mutiara after the government injected it with Rp6.7 trillion in fresh funds.

The market was still positive because basically Indonesia`s macro economic fundamentals were quite sound, and the country`s foreign exchange reserves had increased, he said.

Meanwhile, Krisna Dwi Setiawan, a domestic money market observer of PT Valbury Asia Securities, said the current position of the local currency was quite sound but it would be hard for the rupiah to reach the level of Rp9,200 per US dollar.

Source: | Antara |

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