Rupiah returns to mid-Sept. levels after Bali blast<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The rupiah broke through the Rp 9,000 level against the U.S.
\ndollar for the first time after the Oct. 12 Bali bombing, mainly
\non the back of suspected dollar selling by state companies.<\/p>\n
Monday trading saw the rupiah return to its levels in mid-
\nSeptember, as it ended higher at Rp 8,995 from its opening at Rp
\n9,035.<\/p>\n
\"Many state companies have been seen selling dollars lately,\"
\nthe head of foreign exchange market division at the Standard
\nChartered Bank, Yudhi Wirawan, said, adding that companies
\npurchased the rupiah to make dividend or tax payments to the
\ngovernment.<\/p>\n
The rupiah plunged to Rp 9,330 in the first trading day after
\nthe Bali bombing, as market players were concerned with the
\nsubsequent bleaker economic outlook.<\/p>\n
Bank Indonesia helped break the fall with dollar selling but
\nYudhi said the central bank had ceased market intervention upon
\nseeing the rupiah was recovering.<\/p>\n
Analysts said the market was heartened by the steady progress
\nin the investigation of the Bali bombing, and the government's
\ntougher stance toward terrorism.<\/p>\n
Since last week the rupiah was flirting again with the Rp
\n8,000 level, which was also due in part to a weaker dollar in the
\nregional market and as companies prepared rupiah payments for
\nholiday bonuses.<\/p>\n
\"I heard IBRA (the Indonesian Bank Restructuring Agency) was
\nalso dumping their dollars,\" Yudhi said.<\/p>\n
The agency, which is in charge of selling state assets,
\nconverts dollar earnings into rupiah before transferring proceeds
\nto the government.<\/p>\n
Bank Indonesia senior deputy governor Anwar Nasution confirmed
\nIBRA's recent dollar selling, but could not say whether the
\nagency repeated the action on Monday.<\/p>\n
IBRA recently sold a 51 percent stake in Bank Niaga for about
\nUS$116 million to a Malaysian investor who has yet to pay.<\/p>\n
Payment is due by next Monday, meaning the additional dollar
\nsupply could help sustain the rupiah's recent gains.<\/p>\n
Yudhi said, however, that toward year's end the local currency
\nwould likely retreat to about Rp 9,200 partly on foreign debt
\npayments.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-returns-to-mid-sept-levels-after-bali-blast-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}