Rupiah hits another low, stocks down<\/p>\n
JAKARTA (JP): The rupiah fell yesterday to a new historic low
\nof 3,220 against the U.S. dollar on domestic dollar covering and
\nstock prices trailed down, dealers and brokers said.<\/p>\n
Currency dealers attributed the rupiah's fall to a combination
\nof improving rupiah liquidity, increasing dollar demand and a
\nsharp fall in other regional currencies, especially the Malaysian
\nringgit.<\/p>\n
Spot rupiah dropped to a new low of 3,320 in the afternoon,
\ncompared with the day's opening of 3,125\/3,235 and Friday's close
\nof 3,100\/3,122. It closed at 3,215\/3,220 yesterday.<\/p>\n
Future contracts for tomorrow and today rupiah ended at
\n3,215.75\/3,220.65 and 3,185.5\/3,190.5 respectively.<\/p>\n
One state bank chief dealer said many local corporate
\ncompanies entered the market yesterday looking for dollar. As no
\nlocal players sold dollar, overseas operators could easily push
\ndown the rupiah.<\/p>\n
\"Again, the fall was exacerbated by a thin market and small
\nselling from Singapore players,\" he said.<\/p>\n
\"Once local corporate companies withdraw from the market,
\ndollar would definitely ease against the rupiah,\" he added.<\/p>\n
Despite the dollar's drastic surge in the spot market, dollar
\nwas getting cheaper in the forward and swap markets, he said.<\/p>\n
Swap premiums even dropped to negative for overnight,
\ntomorrow\/next contracts. Overnight swap was at -2.0\/-1.5 and
\ntom\/next was at -0.7\/-0.5 points.<\/p>\n
One-week swap was at 1.5\/3.0, one-month at 21\/24, two at
\n45\/55, three at 75\/85, six at 175\/190 and one-year at 370\/400.<\/p>\n
Currency dealers said swap rates fell across the curve on
\nample rupiah liquidity in the money market and the prospect of
\nlower rates.<\/p>\n
Bank Indonesia, the central bank, has been easing liquidity
\ngradually in the past two weeks and cutting benchmark interest
\nrates to reduce the costs of funds for the economy.<\/p>\n
But unlike the previous Mondays, the central bank kept
\ninterest rates for bilateral papers (SBIs) unchanged yesterday.<\/p>\n
The central bank offered overnight SBIs at 15 percent, two- to
\nfour-day at 16 percent, seven-day at 17 percent, two-week at 19
\npercent, one-month at 21 percent, three at 19 percent, six-month
\nat 12.125 and one-year at 12.75 percent.<\/p>\n
Dealers said the rupiah was slightly helped by the central
\nbank's decision not to change key rates, despite the anticipation
\nof another rate cut yesterday.<\/p>\n
Yesterday's fall in the currency market permeated into the
\nstock market.<\/p>\n
The Jakarta Stock Exchange composite index, the main indicator
\nof local share prices, fell 0.7 percent or 3.682 points to close
\nat 546.238.<\/p>\n
Total turnover was 185.23 million shares worth Rp 266.14
\nbillion (US$83.17 million).<\/p>\n
Stockbrokers said the market was dull yesterday, with most
\ninvestors staying on the sidelines following the rupiah's
\ncollapse and failed expectation on rates cut.<\/p>\n
Vice president of Mashil Jaya Securities, Tjandra Kartika,
\npredicted that the local stock market would remain sluggish in
\nthe short-term due to high rates and relatively tight liquidity.<\/p>\n
\"People hardly have enough funds to buy stocks now,\" Tjandra
\nsaid.<\/p>\n
Nevertheless, some big capitalized stocks like
\ntelecommunications firm Telkom, cement firm Semen Gresik,
\ncigarette makers Gudang Garam and Sampoerna made gains yesterday.<\/p>\n
Telkom increased 50 rupiah to 3,600 rupiah, while Semen Gresik
\nrose 125 rupiah to 3,300 rupiah.<\/p>\n
Cigarette producer Gudang Garam rose 200 rupiah to 9,300
\nrupiah while Sampoerna inched up 50 rupiah to 6,750 rupiah.
\n(aly\/rid)<\/p>\n
New lows -- Page 11<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/rupiah-hits-another-low-stocks-down-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }