Rupiah remains firm, stocks rise slightly<\/p>\n
JAKARTA (JP): The rupiah failed to continue its rally against
\nthe U.S. dollar on Tuesday, closing at 7,400, similar to its
\nclose on Monday, currency dealers said.<\/p>\n
Currency dealers said that most market participants were
\nreluctant to build any position in the run-up to the special
\nsession of the People's Consultative Assembly (MPR), which is
\nscheduled for Nov. 10 to Nov. 13.<\/p>\n
\"Some operators were reluctant to unload their dollar holdings
\nahead of the meeting,\" a chief dealer with a local private bank
\nsaid.<\/p>\n
He said that offshore and local operators who had built a long
\ndollar position at 12,000 and 13,000 were unwilling to sell their
\ndollars at the rupiah's current level of around 7,000.<\/p>\n
Currency dealers said that trading on the rupiah was quiet on
\nTuesday following a rally which pushed the rupiah up to an
\nintraday high of 7,300 on Monday, following reports that the
\nIndonesian government was considering the reintroduction of an
\nintervention band to limit fluctuation in the rupiah exchange
\nrate.<\/p>\n
\"Trading activities remained dull because there was no fresh
\nleads to swing trading sentiment,\" the dealer said.<\/p>\n
The rupiah was traded within a narrow range of 7,350 to 7,750
\nto the dollar on Tuesday.<\/p>\n
Bank Indonesia Governor Sjahril Sabirin said on Tuesday that
\nthe rupiah would likely hold onto its gains in the days ahead as
\nthe country's economy had shown signs of recovery.<\/p>\n
He declined, however, to give an ideal level for the rupiah-
\ndollar exchange rate.<\/p>\n
Last week Sjahril expressed optimism that the rupiah still had
\npotential to advance to between 6,000 and 6.500 against the
\nAmerican dollar.<\/p>\n
But currency dealers said that movement on the rupiah would
\nlikely depend on how the Japanese yen fared against the American
\ndollar in the coming days.<\/p>\n
The Japanese yen closed its Asian trading at 119.59 on
\nTuesday, lower than its Monday's close at 119.10.<\/p>\n
\"If the yen breaks through the 120 level to the dollar, then
\nthe rupiah will come under severe pressure,\" another dealer said,
\nadding out that he expected the rupiah to be traded in range of
\nbetween 7,200 and 7,700 on Wednesday.<\/p>\n
Share prices in the local market closed slightly firmer on
\nTuesday because some investors bought certain blue chip stocks
\nwhich declined on Monday.<\/p>\n
\"But trading activities remained dull,\" an institutional sales
\nbroker with Trimegah Securindolestari said.<\/p>\n
The Jakarta Stock Exchange (JSX) Composite Index rose 2.79
\npoints to 318.10 on a total turnover of 134.13 million shares
\nvalued at Rp 132.92 (US$17.96 million).<\/p>\n
Edhi S. Widjojo, an analyst with Mashill Jaya Securities said
\nthat investors remained afraid to enter the country's shattered
\nbourse due to lingering uncertainties in the country's political
\nenvironment.<\/p>\n
\"The country's political risk is still high and this has
\nprompted investors to continue shunning the market,\" he said.<\/p>\n
Trimegah's broker said that several foreign brokerage firms
\nincluding Jardine Fleming Nusantara and Vickers Ballas Tamara
\nplaced more selling orders than buying orders on Tuesday.<\/p>\n
\"It shows that foreign investors are still worried about our
\nmarket here,\" the broker said.<\/p>\n
Stock prices for mining firm PT Tambang Timah rose by Rp 100
\nto Rp 4,500 with 579,500 shares changing hands, PT Telkom rose by
\nRp 50 to Rp 2,075 with Rp 6.86 million shares traded, and
\ninternational call operator PT Indosat shares rose by Rp 225 to
\nRp 8,175 on 319,500 shares changing hands. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-remains-firm-stocks-rise-slightly-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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