Rupiah ends down as central bank intervenes
\n
\nDow Jones
\nJakarta<\/p>\n
The Indonesian rupiah ended lower on Thursday as the market
\ntracked a strong dollar, but central bank intervention helped
\ncushion the local currency's slide, dealers said.<\/p>\n
The dollar closed at Rp 9,805, up from Rp 9,781 on Wednesday.
\nThe dollar peaked at Rp 9,823 in intraday trading.<\/p>\n
"We expected the rupiah to go much (lower), but it didn't
\nbecause Bank Indonesia sold dollars though state banks at the Rp
\n9,820 mark," a dealer at a foreign bank said.<\/p>\n
The release late Wednesday of data showing that the U.S. trade
\ndeficit narrowed in May prompted a surge in the U.S. unit against
\nthe Japanese yen that local investors tracked with dollar
\npurchases, dealers said.<\/p>\n
They expect the dollar to range from Rp 9,800 to Rp 9,820 on
\nFriday, with the rupiah likely to gain traction against the
\ngreenback from central bank intervention.<\/p>\n
Elsewhere, Indonesian shares ended higher on Thursday, led by
\nsharp gains in Bank Lippo on expectations that consortium
\nSwissasia will sell its stake in the bank at a premium, dealers
\nsaid.<\/p>\n
Gains across Asian markets helped spur buying on the local
\nbourse, but renewed worries that the central bank may continue to
\nincrease its key interest rate to defend the falling rupiah kept
\noverall sentiment weak, dealers said.<\/p>\n
Bank Indonesia on Wednesday increased its key rate on one-
\nmonth Bank Indonesia notes to 8.49 percent from 8.44 percent
\npreviously.<\/p>\n
"The interest rate and the rupiah factors discouraged
\ninvestors from taking up strong buying positions," said an
\nanalyst with Kuo Capital Securities.<\/p>\n
The Jakarta Stock Exchange's Composite Index added 3.775
\npoints, or 0.3 percent, to 1136.569.<\/p>\n
Gainers led decliners 71 to 50, with 70 stocks unchanged.
\nVolume was 1.9 billion shares valued at Rp 1.5 trillion, compared
\nwith 1.5 billion shares valued at Rp 1.2 trillion on Wednesday.<\/p>\n
Bank Lippo jumped 8.2 percent to Rp 1,580 on hopes that
\nSwissasia will sell its 52 percent stake in the bank above the
\ncurrent market price. Malaysia's Khazanah Nasional Bhd. is
\nreported as the leading bidder for the Bank Lippo stake.<\/p>\n
Among other key stocks, Telekomunikasi Indonesia (Telkom) rose
\n1 percent to Rp 5,150 ahead of its plan to pay a dividend of Rp
\n152 a share to shareholders registered as of Friday.<\/p>\n
Bank Negara Indonesia rose 1.8 percent to Rp 1,670 on
\nexpectations that the government will proceed to sell up to a 30
\npercent stake in the bank later this year.<\/p>\n
On the downside, automotive company Astra International
\ncontinued to succumb to selling pressure, losing 1.2 percent to
\nRp 12,500 on renewed worries over declining car sales due to high
\ninterest rates.<\/p>\n
Dealers said they expect Indonesian shares to trade slightly
\nlower Friday on profit-taking after gains in the previous four
\nsessions.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-ends-down-as-central-bank-intervenes-1447899208",
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