Rupiah breaks the 12,000 level against the dollar<\/p>\n
JAKARTA (JP): The rupiah gained more ground against the U.S.
\ndollar yesterday, passing the 12,000 psychological level on
\nbullish sentiment in the regional market and dollar-selling by
\nstate banks.<\/p>\n
It closed 7 percent higher at 11,600 against the dollar,
\ncompared to its close of 12,500 the previous day.<\/p>\n
Currency dealers said the rupiah, which opened at 12,300,
\ncontinued its rally of the past several days as the Japanese yen
\nforged on to stabilize at 144.25 to the American.<\/p>\n
\"A bullish sentiment in the region helped the rupiah to gain a
\nfooting with the dollar,\" a chief dealer with a local private
\nbank commented.<\/p>\n
He said the strengthened yen forced most market participants
\nto cut their long dollar position.<\/p>\n
Dealers said many Singapore operators, who have been active in
\npressing down the rupiah against the American dollar over the
\npast few months, made large stop-loss orders.<\/p>\n
\"Some Singapore operators were seen selling a substantial
\namount of dollars for the rupiah to cut their losses,\" the dealer
\nsaid, pointing out that such stop-loss orders triggered other
\noperators to follow suit.<\/p>\n
Dealers also attributed the strengthening rupiah to persistent
\ndollar selling by some state banks yesterday.<\/p>\n
\"Though the amount is limited, it has given a big boost to the
\nrupiah stand,\" another dealer said.<\/p>\n
Dealers said the intervention by state banks in the absence of
\nfresh riots at home would likely cause the rejuvenated rupiah to
\ntest the 11,500 level in the days ahead.<\/p>\n
Rupiah and share prices were under pressure last week due
\nwidespread rumors of massive riots in the capital on or around
\nthe commemoration of Independence Day Monday.<\/p>\n
Mirroring the strengthening rupiah, stock prices on the
\nJakarta Stock Exchange (JSX) followed suit with the main price
\ngauge closing 2.03 points higher at 405.89 on total turnover of
\n240.03 million shares valued at Rp 272.70 billion (US$23.50
\nmillion).<\/p>\n
Gainers outnumbered losers by 49 to 39, with 95 stocks
\nunchanged and 121 others untraded.<\/p>\n
Associate director of state-owned securities house Bahana
\nSecurities, Andre Cita, said no outbreak of unrest coupled with
\nbold measures by the monetary authority to improve the country's
\nailing banking system sent positive signals to the market in the
\nshort term.<\/p>\n
\"This has improved market sentiment in the local battered
\nbourse.\"<\/p>\n
He said some investors were starting to look into certain
\nselective stocks with dollar earnings like Daya Guna Samudera,
\nAneka Tambang and Berlian Laju Tanker.<\/p>\n
Other brokers attributed the slight rise in stock prices to
\nmassive buying orders in telecommunications provider PT Telkom
\nand other blue-chip stocks yesterday.<\/p>\n
\"Yesterday's gains in the index were mostly on the Telkom
\ngains though trading activities remain slow,\" another dealer with
\na local securities house said.<\/p>\n
Telkom shares rose by Rp 75 to Rp 3,200 on 14.88 million
\nshares, Indosat up Rp 25 to Rp 10,800 on 22.65 million, cigarette
\nmaker HM Sampoerna increased by Rp 200 to Rp 2,750 on 13.02
\nmillion shares and its competitor Gudang Garam followed suit by
\nRp 125 to Rp 8,125 on 940,000 shares.<\/p>\n
Brokers said instant noodle producer Indofood Sukses Makmur
\nclosed higher by Rp 75 to Rp 2,125 on 22.65 million on market
\ntalk that some foreign investors had expressed interest in a
\nsubstantial stake in the company. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-breaks-the-12000-level-against-the-dollar-1447893297",
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