Rupiah stabilizes against U.S. dollar, stocks firm<\/p>\n
JAKARTA (JP): The rupiah continued to stabilize against the
\nU.S. dollar withstanding regional pressure, currency dealers said
\nyesterday.<\/p>\n
Meanwhile, stock dealers said local stock prices ended
\nslightly lower as investors were waiting for the results of talks
\nbetween the International Monetary Fund (IMF) and the Indonesian
\ngovernment for financial assistance.<\/p>\n
Foreign exchange dealers said the rupiah was traded in a
\nnarrow range between 3,560 and 3,585 against the greenback in
\nvery small volume.<\/p>\n
Spot rupiah closed at 3,560\/70 yesterday, against the opening
\nof 3,560\/90 and Friday's close of 3,575\/80.<\/p>\n
\"Trading turnover was practically thin, and the rupiah was
\nunmoved,\" a local bank chief dealer said.<\/p>\n
Currency dealers said the central bank was seen in the market
\nyesterday in an apparent move to prevent the rupiah from falling
\nlike other regional currencies.<\/p>\n
News on the visit by Malaysian Deputy Prime Minister Anwar
\nIbrahim, who pledged to provide US$1 billion in financial aid to
\nIndonesia, helped stabilize the rupiah, dealers said.<\/p>\n
Nevertheless, the market was still waiting for the IMF
\npackage, they said.<\/p>\n
Some analysts and economists in Jakarta have speculated that
\nfinancial aid from the IMF package would be attached to some
\nconditions.<\/p>\n
They may include a series of reforms like the liquidation of
\ninsolvent banks and the abolition of state-agency Bulog's
\nmonopoly over key commodities and some 'sensitive' key
\nindustries.<\/p>\n
But reports that Bank Indonesia would liquidate some insolvent
\nbanks had increased suspicions among currency traders.<\/p>\n
\"Large private banks have not wanted any foreign exchange
\ntransactions with smaller ones since Friday. And some joint
\nventure banks have again cut ties with local private banks,\" a
\ndealer said.<\/p>\n
\"It is therefore important for Bank Indonesia to immediately
\nannounce the names of banks to be liquidated,\" he said.<\/p>\n
As the rupiah stabilized, stock prices on the Jakarta Stock
\nExchange (JSX) ended 0.29 points lower to close at 490.11.<\/p>\n
About 278.04 million shares changed hands in the regular
\nmarket worth Rp 296.1 billion ($84.62 million).<\/p>\n
Stock brokers said investors made some selective buying of
\nsecond-line stocks.<\/p>\n
Securities brokers said the regional fall of stocks,
\nespecially in Hong Kong, did not have a significant impact on
\ntrading activities at the JSX.<\/p>\n
\"Since people are focussing their attention on the IMF talks,
\nthe regional fall has had a trivial impact in the Jakarta
\nmarket,\" an analyst with Pentasenta Securities said. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-stabilizes-against-us-dollar-stocks-firm-1447893297",
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