Rupiah poised to gain more: Analyst<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
The rupiah got off to a record-high level against the U.S.
\ndollar last week, with analysts expecting the bullish trend to
\ncontinue this week amid lingering bright sentiments.<\/p>\n
Last Friday, the rupiah surged to 9,835 against the greenback,
\nits highest closing this year due in part to suspected late
\ndollar selling by the Indonesian Bank Restructuring Agency
\n(IBRA).<\/p>\n
Currency and stock analyst at Danareksa Research Institute
\nFerry Latuhihin predicted the rupiah would remain stable with
\ngood chances of further strengthening.<\/p>\n
\"The volatility of the currency has been very low lately,
\nthanks to growing confidence among market players,\" Ferry told
\nThe Jakarta Post over the weekend.<\/p>\n
He said the rupiah could likely test the 9,800 level in
\ntrading this week.<\/p>\n
Contributing to the rupiah's push had been the country's
\nrelative stable political and economic outlook, with no major
\nsecurity threats weighing down on the unit as happened last year.<\/p>\n
The confidence rush from the recent sale of the country's
\nlargest private bank, Bank Central Asia (BCA) helped cement the
\nrupiah's path upward, he added.<\/p>\n
BCA was sold to a consortium led by the U.S. investment firm
\nFarallon Capital Management in a deal worth some Rp 5.3 trillion
\n(about $530 million).<\/p>\n
The government expects Farallon to pay out the first
\ninstallment by March 28, which traders said turned the market
\nsomewhat dollar bearish.<\/p>\n
Players anticipate Farallon will inject a fresh dollar supply
\nof roughly $300 million by next week's deadline to pay for the
\nthe first 30 percent stake in BCA of the total 51 percent it
\nacquired.<\/p>\n
The Indonesian Bank Restructuring Agency aims to sell more
\nbanks, with Bank Niaga having already attracted a mix of 20
\nforeign and local investors. Next on the list are Bank Danamon,
\nBank Lippo and Bank Internasional Indonesia (BII).<\/p>\n
A dealer with a foreign-based brokerage was also upbeat on the
\nrupiah's outlook, but warned the country's foreign debt overhang
\nremained a major drag on the local unit.<\/p>\n
\"The rupiah will rise gradually. Don't expect jumps, there is
\ncontinued pressure from payments of foreign debt,\" he said.<\/p>\n
The latest data showed sovereign debts at around US$130
\nbillion. This year's state budget allocates nearly Rp 44 trillion
\non foreign debt payment, but also aims to reschedule some of it
\nthrough a Paris Club accord.<\/p>\n
The government is slated to meet sovereign creditors under the
\nParis Club next month, to seek a debt rescheduling of between $5
\nbillion to $6 billion for the fiscal year until 2003.<\/p>\n
Finance minister Boediono visited several Paris Club member
\ncountries last week to seek their support.<\/p>\n
The outcome has yet to be disclosed. There is some fear of
\nlenders denying Indonesia access to higher rescheduling amounts,
\nas Indonesia has been lagging behind in reform targets.<\/p>\n
But confidence in the rupiah remained strong nonetheless, as
\nwas also visible in the stock market, Ferry went on.<\/p>\n
Last week, the Jakarta Stock Exchange Composite Index edged up
\n3.6 percent, or 16.741 points, to close at 484.732, versus 467.99
\npoints the week before.<\/p>\n
The index may test the 495 level this week, according to one
\ndealer at a local security firm.<\/p>\n
\"Trading this week will remain active, with buying of blue
\nchips shares. First, the market will try to break 495, and then
\nmaybe 500,\" he said.<\/p>\n
The market, he said, was expecting good news from the slew of
\nannual reports to be released this week, among them from state-
\nrun cementmaker PT Semen Gresik.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-poised-to-gain-more-analyst-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}