Rupiah strengthens on reform commitment<\/p>\n
JAKARTA (JP): The rupiah bounced back more than 20 percent at
\nits peak yesterday, after a dramatic collapse Thursday, thanks to
\nthe central bank's support and various positive news in the
\nmarket.<\/p>\n
Currency dealers said sentiment had improved after U.S.
\nPresident Bill Clinton spoke with President Soeharto about the
\neconomic crisis and the latter voiced his commitment to reforms
\nagreed upon with the International Monetary Fund (IMF).<\/p>\n
The rupiah topped 7,600 against the U.S. dollar in the morning
\ntrading session yesterday before ending at 7,800\/8,300, compared
\nto an opening of 10,200\/10,700.<\/p>\n
Minister of Finance Mar'ie Muhammad voiced optimism that the
\nrupiah would continue to strengthen and the government would
\ncontinue its efforts to stabilize the rupiah.<\/p>\n
\"Thank God the rupiah has strengthened,\" said Mar'ie.<\/p>\n
Dealers said they were surprised by the sharp increase of the
\nrupiah yesterday amid political concerns and the people's panic
\nin buying basic needs.<\/p>\n
\"We are really surprised by this sharp increase in the rupiah,
\njust as we were surprised when the rupiah sharply dropped
\nyesterday (Thursday),\" a dealer said.<\/p>\n
Currency dealers said the rupiah got support from Bank
\nIndonesia, the central bank, through state banks and some dollar
\nselling by Singapore operators.<\/p>\n
The dealers said state-owned Bank Ekspor Impor Indonesia and
\nBank Dagang Negara were seen selling a significant amount of
\ndollars in the spot market.<\/p>\n
\"Besides, Singapore operators who bought a lot of dollars the
\nprevious day sold quite a bit yesterday, which brought the rupiah
\nup,\" a dealer with a local private bank said.<\/p>\n
However, the stock market did not trail the strengthening
\nrupiah. It failed to hold early gains and shed more than 1
\npercent.<\/p>\n
The Jakarta Stock Exchange composite index closed 4.13 points
\nlower to 342.97, off a high of 362.79 in the morning, from 347.10
\nthe previous day.<\/p>\n
The Jakarta currency market was symbolically marked by dollar
\nselling by President Soeharto's eldest daughter, Siti Hardiyanti
\nRukmana, who campaigned for dollar selling by Indonesians.<\/p>\n
She sold about $50,000 of her savings account at state-owned
\nBank Bumi Daya to buy rupiah.<\/p>\n
Bank Indonesia Governor J. Soedradjad Djiwandono said he
\nwelcomed such an initiative. (aly\/rid)<\/p>\n
Tutut -- Page 2<\/p>\n
Currencies -- Page 11<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/rupiah-strengthens-on-reform-commitment-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }