Capital inflows boost rupiah: BI<\/p>\n
Dow Jones, Jakarta<\/p>\n
Bank Indonesia isn't worried over the rupiah's recent sharp rise
\nagainst the dollar and will leave it up to the market to
\ndetermine an appropriate level for the local currency, the
\ncentral bank's Governor Sjahril Sabirin said on Monday.<\/p>\n
The central bank governor added that the rupiah's recent
\nstrength is due to improving market sentiment toward Indonesian
\ninvestments.<\/p>\n
The rupiah rose to new 10-month high of Rp 8,675 to the dollar
\non Monday.<\/p>\n
Worries over the possibility of a violent backlash over the
\nU.S.-led war in Iraq sent the local currency lower to 9,095
\nearlier this month.<\/p>\n
But anti-war protests went off peacefully, which encouraged
\nforeign investors to buy Indonesian portfolios that are offering
\nfavorable returns.<\/p>\n
Some analysts have expressed concern that the rupiah's sharp
\nrise may hurt Indonesian exports, which are already facing
\nweakening demand from the country's main export destinations,
\nsuch as the U.S. and Japan.<\/p>\n
Some dealers have said Bank Indonesia may intervene to stem
\nthe rupiah's rise as it is trading outside the 8,800-9,200 range
\nthat the central bank had forecast for this year.<\/p>\n
Sjahril said that the central bank will leave the rupiah's
\nexchange rate to market forces, as long as it isn't "too
\nvolatile."<\/p>\n
Looking ahead, Sjahril said that he expected market sentiment
\ntoward the rupiah to remain positive, but didn't elaborate.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/capital-inflows-boost-rupiah-bi-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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