Rupiah continues bullish performance<\/p>\n
JAKARTA (JP): The rupiah maintained its bullish performance
\nfor a third consecutive day on Thursday although some feared that
\npolitical pressure against President Abdurrahman Wahid would
\nintensify in the coming days following his refusal to answer the
\nrequest from the House of Representatives to explain the firing
\nof two ministers.<\/p>\n
Currency dealers said the Indonesian currency ended the day
\n1.5 percent higher at 8,890 against the U.S. dollar as compared
\nto 9,018 in late trading on Wednesday.<\/p>\n
The rupiah rose to a range of between Rp 8,870 and 8,890 in
\nthe morning trade as the market gave a positive reaction to the
\npresence of President Abdurrahman, more popularly called Gus Dur,
\nat the meeting.<\/p>\n
But unfortunately Gus Dur's presence at the meeting was not
\naimed at answering questions but to defy the legislature's right
\nof interpellation. This caused the rupiah to dive as low as 9,210
\naround lunch time as some feared that the President's refusal
\nwould further intensify current conflicts.<\/p>\n
Profit-taking in late trading, however, helped the rupiah to
\nrecover to the Rp 9,000 level.<\/p>\n
A dealer at a Singaporean joint venture bank said that the
\nstrengthening of the rupiah was due to Bank Indonesia's
\nintervention.<\/p>\n
\"It is understandable that they have to defend the rupiah
\nafter it had been continuously rebounding for a few days prior to
\nGus Dur's visit to the House of Representatives,\" he said.<\/p>\n
He supported the central bank's intervention as such a move
\ncould further encourage players who had earlier bought dollars on
\nbad news to square their long dollar positions.<\/p>\n
\"The central bank has to try to bring back the rupiah to its
\nlate June 8,750 level so as to trigger more and more participants
\nto cut losses on their recent dollar holdings,\" he said.<\/p>\n
He added the 8,750 level was critical for the rupiah, as this
\nlevel was the starting point for the rupiah's roller coaster ride
\nthis time around immediately following a bomb explosion at the
\nAttorney General's office.<\/p>\n
He predicted the rupiah would be traded in a wide range of
\nbetween 8,750 and 9,150 on Friday.<\/p>\n
Unlike the rupiah, the Jakarta Stock Exchange (JSX) Composite
\nIndex ended one-third of a point down at 513.39 on Thursday.<\/p>\n
Erwin S. Widjojo of Indovest Securities said the equity
\nmarket, however, had a good start early in the morning session on
\nThursday, briefly booking some positive gains.<\/p>\n
But the Composite Index then shifted direction late morning
\nand took a rather quick dive.(udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-continues-bullish-performance-1447893297",
"image": ""
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