Rupiah to remain stable this week<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
The rupiah is expected to remain stable at its current level of
\naround Rp 9,000 per U.S. dollar this week after the Idul Fitri
\nholiday.<\/p>\n
"The rupiah is likely to be stable this week within the range
\n8,959 to 9,000 in a thin market, with a trading volume under
\nUS$200 million," director of Currency Management Group Farial
\nAnwar told The Jakarta Post on Monday.<\/p>\n
He said that positive economic news both at home and overseas
\nwould outweigh the negative news resulting from another bombing
\nincident last week in Makassar, South Sulawesi.<\/p>\n
He said that the positive news could actually strengthen the
\nrupiah, albeit slightly.<\/p>\n
Farial said the decision by the International Monetary Fund
\nlate last week to disburse another loan tranche of US$365 million
\nto the country was a positive factor for the rupiah because it
\nreflected a vote of confidence on the progress Indonesia was
\nmaking in carrying out its promised economic reform programs.<\/p>\n
Over the last few weeks, the rupiah had been hovering within a
\nnarrow range, with last week's trade closing at 8,987 against the
\ndollar, compared with 8,975 the week before.<\/p>\n
Another development that would benefit the rupiah was the
\nrecent slide of the dollar against many regional currencies
\nfollowing the resignation of U.S. treasury secretary Paul
\nO'Neill. In Asia, the news proved on Monday to have fueled heavy
\ndollar selling across the region.<\/p>\n
On the domestic front, progress in privatization and the sale
\nof assets under the Indonesian Bank Restructuring Agency (IBRA)
\nwould also prove beneficial to the local currency, Farial added.<\/p>\n
The long-awaited truce between the government and the Free
\nAceh Movement (GAM), signed on Monday, could pave the way to end
\nthe decades-long bloody conflict and add to positive market
\nsentiment.<\/p>\n
On the stock market, the Composite Index would continue its
\nbullish sentiment this week with chances of breaking the 400
\nlevel running high, according to an analyst.<\/p>\n
"As overall market sentiment remains good, the index is still
\non an upward trend toward year-end, with a strong possibility of
\nthe index breaking the 400-point level this week," Jasso Winarto
\nof the Sigma Research Institute said.<\/p>\n
Last week, the index managed to benefit from four days of
\ntrading to close higher at 397.08, as against 390.42 the week
\nbefore, continuing its steady rise over the past few weeks.<\/p>\n
Aside from a stable macroeconomic condition, the good
\nsentiment in the market should also be attributed to the news at
\ncorporate levels, Jasso said.<\/p>\n
Leading companies, including the country's largest automotive
\nmaker Astra International, cigarette producer Sampoerna, state
\ntelecommunications companies Indosat and Telkom, had performed
\nwell during the year.<\/p>\n
"Some of them have even posted all-time records in their
\nprofits. It's those shares that will attract most investors,
\nwhich will, in turn, boost the index as a whole," Jasso added.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-to-remain-stable-this-week-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}