Rupiah's fluctuation within normal range: Dorodjatun<\/p>\n
JAKARTA (JP): Coordinating Minister for the Economy Dorodjatun
\nKuntjoro-Jakti played down on Thursday the weakness of the
\nrupiah, saying that the local currency's fluctuation was still
\nwithin normal limits.<\/p>\n
\"Fluctuation is quite normal. But we hope it won't exceed 10
\npercent,\" Dorodjatun said after a Cabinet meeting in Jakarta.<\/p>\n
He said the rupiah's weakness was temporary due to the rising
\ndemand for dollars for debt servicing.<\/p>\n
The rupiah fell to Rp 9,175 in thin trade on Wednesday
\ncompared with Rp 8,580 on Aug. 13, the highest point for about
\none year. The rupiah bounced back to Rp 8,925 on Thursday.<\/p>\n
Dorodjatun also said the government would allow market forces
\nto determine the rupiah's exchange rate.<\/p>\n
A broker working with a joint venture company said some
\ncorporations delayed buying rupiah, thinking that the currency
\nwould strengthen further after the government signed the letter
\nof intent with the International Monetary Fund.<\/p>\n
\"But their speculation turned out to be wrong,\" said the
\ntrader, adding that Wednesday was the deadline for those
\ncompanies to pay their debts.<\/p>\n
He expressed optimism that the rupiah would end stronger on
\nFriday as demand for dollars had decreased significantly.<\/p>\n
\"I foresee the rupiah trading within the range of Rp 8,700 and
\nRp 8,900 on Friday,\" he said.<\/p>\n
The broker said the rupiah would appreciate even stronger if
\nthe government could successfully restructure the country's
\nailing banking sector and privatize assets currently held by the
\nIndonesian Bank Restructuring Agency (IBRA) as well as provide
\nlegal certainty to foreign investors already doing business in
\nthe country.<\/p>\n
The dollar found little respite from news Wednesday that the
\nU.S. economy had averted a recession in the second quarter.<\/p>\n
Second-quarter U.S. gross domestic product grew at a revised
\n0.2 percent pace, the slowest in more than eight years. The
\nsecond quarter was previously estimated at a 0.7 percent rate of
\ngrowth. The revised figure was still better than economists'
\nconsensus expectation of zero growth; many had expected GDP to
\nshrink.<\/p>\n
Still, the dollar failed to make much headway against the yen,
\ndespite a sharper-than-expected fall in Japan's July industrial
\noutput -- which contracted by 2.8 percent -- and a continued slide
\nin the benchmark Nikkei stock index to new 17-year lows,
\naccording to Dow Jones Newswires.<\/p>\n
At 0845 GMT (3.45 p.m. Jakarta time), the dollar was quoted at
\n119.79 yen, below 120.14 yen late Wednesday in New York. The
\ndollar was at 119.87 yen late Wednesday in Tokyo.<\/p>\n
Against the Singapore dollar, the U.S. currency was at
\nS$1.7471, down from S$1.7507 late Wednesday.<\/p>\n
The yen's resilience and traditional month-end exporter dollar
\nsales bolstered the New Taiwan dollar, although central bank
\npurchases of the U.S. currency kept a rein on the local dollar's
\nadvance, dealers said.<\/p>\n
The U.S. dollar closed at NT$34.582, down from NT$34.593
\nWednesday.<\/p>\n
Underperforming the yen, the South Korean won ended marginally
\nweaker after trading in a narrow range, as Hynix Semiconductor
\nInc.'s precarious position continued to vex local financial
\nmarkets after the chipmaker decided to withhold payment on 400
\nbillion won of bonds that matured Monday.<\/p>\n
The dollar finished at 1,283.7 won, slightly higher than
\nWednesday's close of 1,281.7 won.<\/p>\n
On the Philippine Dealing System, dollar short-covering by
\nbanks weighed on the peso, which was uninspired by the country's
\nstronger-than-expected economic growth in the second quarter,
\ndealers said.<\/p>\n
The dollar closed at 51.215 pesos, a touch higher than 51.190
\npesos Wednesday.<\/p>\n
The Thai currency was steady around 44.265 baht a dollar,
\ncompared with 44.255 baht late Wednesday. (03)<\/p>",
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