Rupiah stabilizes as BI steps in<\/p>\n
JAKARTA (JP): The rupiah dropped to the 3,685 level in the
\nmorning but managed to gain ground to stabilize at 3,620\/40
\nagainst the opening of 3,600\/50 due to the central bank's
\nintervention, currency dealers said.<\/p>\n
\"Bank Indonesia was seen in the market twice but there were no
\nreports about the amount of dollars sold,\" one local bank chief
\ndealer said.<\/p>\n
Foreign exchange dealers claimed that such interventions were
\nuseful to prevent the rupiah from surpassing the 3,700 level.<\/p>\n
\"Though intervention is not so efficient, it prevented the
\nrupiah to surpass the 3,700 level,\" said one dealer.<\/p>\n
Most currency dealers said that trading activity in the
\ncurrency market was relatively slow yesterday as most people were
\nstill waiting for the details of the IMF-led financial package
\nfor Indonesia.<\/p>\n
\"The market is slow because there is no good news for the
\nrupiah as most people were waiting for the details of the
\nfinancial package from IMF,\" one local bank chief dealer said.<\/p>\n
The IMF-led team is in Jakarta to discuss the financial
\npackage to restore market confidence in Indonesia.<\/p>\n
IMF Managing Director Michel Camdessus said yesterday that IMF
\ntalks with Indonesia were extremely constructive and that he
\nhoped for an important deal soon.<\/p>\n
\"On Indonesia, we have a mission negotiating in Jakarta. What
\nI hear from the negotiations is that they are evolving in an
\nextremely constructive climate,\" he told Reuters in Paris.<\/p>\n
Dealers said Bank Indonesia's move to cut the interest rates
\non short-term papers (SBIs) by 100 basis points did not boost
\nmarket sentiment.<\/p>\n
The lackluster trading activity in the currency market also
\naffected trading on the Jakarta Stock Exchange (JSX) with the
\nmain price gauge slipping 1.2 percent or 6.51 points to 514.17
\nyesterday.<\/p>\n
Total turnover was 246.11 million shares changing hands on the
\nregular market valued at Rp 264.46 billion (US$75.56 million)
\nyesterday.<\/p>\n
Securities brokers said that the decline was partly caused by
\na lack of confidence in the rupiah's stability and the failure of
\na central bank interest rate cut to bolster sentiment.<\/p>\n
\"The SBIs rate cut did not help boost trading activity in the
\ncurrency and stock markets because it was only one percent,\" an
\nanalyst with Harita Securities said.<\/p>\n
Harry Danardojo, managing sales director of Lippo Securities,
\nsaid yesterday that most foreign investors tracked sidelines
\nbecause they were waiting for the announcement of the full
\nfinancial package from the IMF in the face of the country's
\ncurrency woes.<\/p>\n
\"Most investors are now waiting for the announcement of the
\nIMF-led financial package and the currency to stabilize,\" he
\nsaid.<\/p>\n
Harry said most foreign investors viewed that the rupiah
\ndepreciation against the U.S. dollar was the key factor for most
\nforeign investors to stay out of the stock market for the time
\nbeing.<\/p>\n
A securities analyst said that trading activities on the JSX
\nwas slow yesterday marked by major sell-offs of big capitalized
\nstocks like Telkom, HM Sampoerna, Gudang Garam and Bank
\nInternasional Indonesia. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-stabilizes-as-bi-steps-in-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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