Rupiah Ends Up On Reported Ctlr Bk Intervention
\nJP\/14\/Market<\/p>\n
Rupiah Ends Up On Reported Ctlr Bk Intervention<\/p>\n
Dow Jones\/Jakarta<\/p>\n
The Indonesian rupiah closed slightly higher on Friday as Bank
\nIndonesia reportedly unloaded dollars to prop up the local unit,
\ndealers said.<\/p>\n
The dollar closed at Rp 9,560, down from its close on Thursday
\nat Rp 9,570. The dollar was well-bid earlier in the day as
\nseveral offshore market participants who had short-sold the unit
\nbought back the currency to lock in profits. But the central bank
\npersistently sold dollars via state banks, dealers said.<\/p>\n
\"Some Singaporean-based players cut their dollar-long
\npositions shortly before trading closed on concerns that Bank
\nIndonesia may intervene Monday when the players are away on
\nholiday,\" a dealer said.<\/p>\n
Businesses will be closed in Singapore on Monday.<\/p>\n
The market seemed to welcome Bank Indonesia's move to raise
\nthe maximum interest rates on dollar deposits covered by the
\ngovernment's blanket guarantee by 135 basis points to 2 percent,
\neffective on Sunday.<\/p>\n
An official with the central bank told Dow Jones Newswires on
\nFriday that the move is aimed at persuading people to keep their
\ndollar deposits domestically instead of moving their funds out of
\nthe country to get higher returns.<\/p>\n
This is eventually expected to help ease the pressure on the
\nrupiah, which this week fell to its lowest level against the U.S.
\ndollar in more than three years.<\/p>\n
Dealers expect the dollar to trade between Rp 9,530 and Rp
\n9,600 on Monday, with trading volume expected to be thinner due
\nto the holiday in Singapore.<\/p>\n
Indonesian shares ended lower on Friday, led by selling in
\nTelekomunikasi Indonesia and Bank Mandiri, with declines in many
\nAsian markets hurting overall sentiment, dealers said.<\/p>\n
\"It's a weak and cautious market,\" said a trader with Kuo
\nCapital securities. He added that many investors stayed on the
\nsidelines because of an absence of fresh leads.<\/p>\n
The Jakarta Stock Exchange Composite Index ended down 8.744
\npoints, or 0.8 percent, at 1029.613.<\/p>\n
Decliners led gainers 91 to 31, with 51 stocks unchanged.<\/p>\n
Volume fell to one billion shares valued at Rp 1.1 trillion,
\ncompared with 1.25 billion shares valued at Rp 1.4 trillion on
\nThursday.<\/p>\n
Telekomunikasi Indonesia, the nation's largest
\ntelecommunication company, led losses, falling 1.7 percent to Rp
\n4,275 on expectations that its 2004 earnings will be lower than
\nprevious market expectations due to foreign-exchange losses.
\nTelkom, which has around US$1 billion in debt, plans to announce
\nearnings on Monday.<\/p>\n
Telkom's rival Indonesian Satellite lost 1.1 percent to
\nRp 4,325 on expectations of lower first-quarter earnings.<\/p>\n
Bank Mandiri, the nation's largest lender by assets, succumbed
\nto profit-taking, falling 1.8 percent to Rp 1,600 after rising 11
\npercent on Thursday on bargain-hunting following sharp losses due
\nto a corruption investigation into the bank's lending practices.<\/p>\n
Dealers expect the market to trade higher on Monday on a
\nrebound in blue-chip banks ahead of the government's plans to
\nsell a 5 percent stake in Bank Central Asia early next month.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-ends-up-on-reported-ctlr-bk-intervention-1447893297",
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