BI says rupiah to rise in 2005

BI says rupiah to rise in 2005

JAKARTA: Bank Indonesia (BI) said it expects the rupiah to "gradually" strengthen against the dollar this year, supported by foreign investment inflows, the central bank governor said.

"Dollar supply is estimated to increase from overseas portfolio investment as well as an increase in foreign-direct investment, in line with a better investment environment," helping support the rupiah, BI Governor Burhanuddin Abdullah said in statement to lawmakers on Monday.

The currency fell 0.2 percent to 9,496 against the dollar as of 10:23 a.m. Jakarta time, a decline of 2.4 percent this year, the third-worst performer among the 15 Asia-Pacific currencies tracked by Bloomberg. The benchmark Jakarta Composite Index of stocks rose 2.8 percent in dollar terms this year.-- Bloomberg