Rupiah breaches 8,000 against dollar<\/p>\n
JAKARTA (JP): The rupiah breached on Monday the 8,000 level
\nagainst the U.S. dollar as international pressure increased over
\nIndonesia's handling of the East Timor issue.<\/p>\n
Currency dealers said investors dumped their Indonesian
\ncurrency over concerns that the growing pressure would prompt
\ndonors to suspend loans to Indonesia.<\/p>\n
The rupiah lost nearly 2.5 percent to end the day at Rp 8,010
\nagainst the American dollar -- its lowest level since early June
\n-- from 7,815 at the close of Friday trading.<\/p>\n
The East Timor issue also dragged down share prices, with the
\nJakarta Stock Exchange (JSX) Composite Index falling almost 4.5
\npercent to close at 549.42 in thin trading.<\/p>\n
Major countries and international institutions warned
\nIndonesia on Monday to ensure stability in the violence-wracked
\nprovince.<\/p>\n
The International Monetary Fund, which is leading a US$43
\nbillion economic bailout for Indonesia, issued on Monday a veiled
\nthreat, saying the Indonesian government had \"every interest in
\nseeing the process in East Timor unfold smoothly and without
\nviolence, in accordance with internationally recognized norms\".<\/p>\n
Bank Indonesia (BI) Governor Sjahril Sabirin also acknowledged
\nthat the weakening of the rupiah against the U.S. dollar was
\ndirectly related to the situation in East Timor.<\/p>\n
He acknowledged that the central bank had intervened in the
\nmarket to prevent the market rate from moving unrealistically out
\nof proportion due to the political instability.<\/p>\n
He said BI sold $5 million on the day to arrest a further drop
\nin the Indonesian currency.<\/p>\n
Sabirin said the current ideal level for the rupiah exchange
\nrate against the greenback was between Rp 6,000 and Rp 7,000 per
\ndollar.<\/p>\n
Mirroring the rupiah, stock prices on the Jakarta Stock
\nExchange fell 24.76 points, or 4.38 percent, to close at 540.42
\nin thin trading with a total value of only about Rp 300 billion.<\/p>\n
Vonny Juwono, a broker at PT Trimegah Securindolestari, said
\nthat foreign investors, the main market players in the local
\nstock market, mostly sold their blue chip stocks.<\/p>\n
She said the instability in East Timor was affecting the
\nmarket.<\/p>\n
\"There is certainly the East Timor factor, which led to the
\ndrop in share prices.\"<\/p>\n
Vonny said trading on the JSX in coming days would continue to
\nremain thin and bearish.<\/p>\n
She said that the trading value was below Rp 400 billion.<\/p>\n
Vonny said the East Timor issue had overshadowed the potential
\nmarket effects of the companies' good results in the first half
\nin financial reports recently released to the public.<\/p>\n
At the close of trading, shares of state-owned
\ntelecommunication companies were down. PT Telkom lost 6.2
\npercent, or Rp 175 to Rp 2,650, and PT Indosat fell 1.7 percent,
\nor Rp 200 to Rp 2,650.<\/p>\n
Cigarette manufacturer PT Gudang Garam lost 9.1 percent, or Rp
\n1,700 to Rp 17,000, and its competitor HM Sampoerna fell by 4.2
\npercent, or Rp 650 to Rp 15,000.<\/p>\n
The most actively traded Bank Lippo shares fell 13 percent, or
\nRp 25 to Rp 175. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-breaches-8000-against-dollar-1447893297",
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