Rupiah ends lower amid regionwide weakness on Greenspan testimony<\/p>\n
Dow Jones, Jakarta<\/p>\n
The rupiah ended lower on Thursday, tracking losses in major
\nAsian currencies following further upbeat testimony from U.S.
\nFederal Reserve Chairman Alan Greenspan overnight.<\/p>\n
After hitting an intra-day high of Rp 9,090, the dollar closed
\nat 9,070, up from its close Wednesday at 9,010.<\/p>\n
Greenspan reiterated in Congress that the U.S. economy remains
\non a recovery path and reconfirmed the Fed's intention to hike
\ninterest rates gradually, while pledging to fight inflation
\nshould it arise.<\/p>\n
Dealers also attributed the rupiah's fall to increased dollar
\ndemand from local companies to repay debt at the end of the
\nmonth.<\/p>\n
Demand from local companies will likely keep the dollar above
\n9,000 until the end of the month, they added. Local firms are
\nsaddled with over US$60 billion in offshore borrowing and payment
\nof such maturing debt usually weighs on the rupiah.<\/p>\n
"Underlying sentiment toward the rupiah is weak for the mid-
\nterm period," said a dealer with a state-owned bank.<\/p>\n
Dealers expect the dollar to trade between 9,050 and 9,150
\nFriday.<\/p>\n
Meanwhile, shares ended a tad higher with a late rebound in
\nselect bank and automotive blue chips reversing earlier losses,
\ndealers said.<\/p>\n
Overall sentiment, however, remained weak on renewed concerns
\nthat the rupiah may fall further against the U.S. dollar and due
\nto losses in most Asian markets, they added.<\/p>\n
After staying in negative territory for most of the session,
\nthe Jakarta Stock Exchange's composite index ended up just 0.279
\npoint at 761.518.<\/p>\n
Gainers led decliners 46 to 43, while 74 stocks were
\nunchanged. Volume was 985 million shares valued at Rp 601 billion
\nrupiah.<\/p>\n
Car maker Astra International ended up Rp 150, or 2.7 percent,
\nat 5,800 on expectations of higher first half net profit. The
\ncompany is expected to announce the results next month.<\/p>\n
Bank Danamon jumped Rp 125, or 3.9 percent, to Rp 3,350 on a
\nrebound, and cigarette maker Hanjaya Mandala Sampoerna rose Rp
\n100, or 1.8 percent, to Rp 5,800 for the same reason.<\/p>\n
Shares in index heavyweight Telekomunikasi Indonesia dropped
\nRp 100, or 1.3 percent, to Rp 7,750 on profit-taking. The stock
\ngained 2 percent Wednesday.<\/p>\n
Dealers expect the market to Friday to trade flat to slightly
\nhigher on a further rebound.<\/p>",
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