Rupiah ends up on optimism of growth<\/p>\n
Dow Jones
\nJakarta<\/p>\n
The rupiah ended higher on Tuesday, on buying fueled by
\noptimism that a powerful blast in Jakarta last week likely will
\nnot hurt the country's overall economy or disrupt next week's
\npresidential election, dealers said.<\/p>\n
The dollar ended at Rp 9,110, down from its close of 9,280 on
\nFriday. Tuesday's closing level was the U.S. unit's lowest since
\nJuly 27, when it ended at 9,095. The local currency market was
\nclosed on Monday for a public holiday.<\/p>\n
Dealers said the rupiah's recovery after the blast last week
\nshowed that investors have become immune to terrorist attacks in
\nIndonesia following the Bali bombing in 2002.<\/p>\n
\"The long weekend was also peaceful, which gave further
\nreasons for market participants to unload the dollar,\" a dealer
\nsaid.<\/p>\n
Coordinating Minister for Economic Affairs Dorodjatun
\nKuntjoro-Jakti added to the optimism on Tuesday, saying he
\nexpects the economy to grow 4.8 percent this year, in line with
\nthe government's target, despite the bombing outside the
\nAustralian embassy in Jakarta last Thursday.<\/p>\n
\"Our economic fundamentals are better now than in the previous
\nyears,\" he told reporters.<\/p>\n
Dealers said they expect the presidential runoff election on
\nMonday to be peaceful as they do not see any connection between
\nthe bombing and the poll. Surveys show that former security
\nminister Susilo Bambang Yudhoyono is expected to beat President
\nMegawati Soekarnoputri.<\/p>\n
Also helping the rupiah was the 1.4 percent rally in
\nIndonesian stocks on Tuesday, as foreign investors continued to
\nbuy back Indonesian shares after heavy selling following the
\nrecent bombing.<\/p>\n
Dealers said the dollar may continue falling on Wednesday, but
\nthe decline is expected to slow after Tuesday's sharp fall.<\/p>\n
They expect the dollar to trade between 9,050 and 9,150 on
\nWednesday.<\/p>\n
Meanwhile, shares ended higher as investors remained hopeful
\nthat the aftereffects of the bomb attack would not undermine the
\neconomy and disrupt the Sept. 20 presidential elections, dealers
\nsaid.<\/p>\n
\"Also, a peaceful election is expected to further boost the
\nrupiah and consequently prop up sentiment,\" said a trader with
\nCatur Pilar Securities.<\/p>\n
The Jakarta Stock Exchange's main index ended up 11.241
\npoints, or 1.4 percent, to 809.016 - a fresh 20-week high.<\/p>\n
Gainers led decliners 63 to 58, with 76 stocks unchanged.
\nVolume was 1.87 billion shares valued at Rp 1.7 trillion.<\/p>\n
Telekomunikasi Indonesia led gainers, ending up Rp 150, or 1.9
\npercent, at Rp 8,200, on expectations that the company will make
\nan announcement later this week on its planned 2-for-1 stock
\nsplit.<\/p>\n
Indonesian Satellite Corp. jumped Rp 150, or 3.5 percent, to
\nRp 4,425 on expectations of higher 2004 revenue.<\/p>\n
Bank Danamon climbed Rp 200, or 5.6 percent, to Rp 3,800 and
\nBank Central Asia gained Rp 100, or 5.3 percent, to Rp 1,975.<\/p>\n
Bucking the trend, Bank Rakyat fell Rp 25, or 1.3 percent, to
\nRp 1,925 on profit-taking.<\/p>\n
Dealers said they expect the market on Wednesday to trade
\nhigher, with profit-taking likely to cap gains.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-ends-up-on-optimism-of-growth-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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