Rupiah ends at 16-week high

Rupiah ends at 16-week high

Dow Jones, Jakarta

The rupiah ended at a 16-week high on Monday as the dollar continued to weaken globally in the wake of the U.S. presidential election last week, dealers said.

The dollar ended at Rp 8,985, down from its close Friday at 9,065.

"Investors now are focusing on the massive U.S. budget and trade deficits," a dealer at a foreign bank said.

The dollar's fall against the rupiah, however, was slowed by demand for the U.S. currency from local importers looking to step up overseas purchases ahead of upcoming religious festivities, dealers said.

Indonesian Muslims will later this week celebrate Idul Fitri, which marks the end of the Ramadhan fasting month. Indonesian markets will be closed Nov. 15 to Nov. 19, for the holiday.

Consumer spending also tends to rise toward Christmas in December.

Dealers expect the dollar to trade between 8,950 and 9,000 Tuesday.

Meanwhile, shares ended lower on Monday led by continued profit-taking in Bank Mandiri on renewed worries the central bank may further raise interest rates to combat rising inflation, dealers said.

They added that overall sentiment was weak, hurt by losses in most Asian markets, with many investors staying on the sidelines due to the absence of fresh leads.

"The market ran out of steam after recent sharp gains," said a trader with Paramitra Securities. He added that investors also started to consolidate their position ahead of a long holiday next week.

The Jakarta Stock Exchange Composite ended down 4.901 points, or 0.6 percent, at 888.738. The main index ended at a record high Friday. Decliners led gainers 79 to 35, while 77 stocks were unchanged. Volume was 850 million shares worth Rp 848 billion.

Bank Mandiri fell 3 percent to Rp 1,625, while rival Bank Danamon dropped 0.7 percent to Rp 3,650.

Profit-taking also hit bellwether Telekomunikasi Indonesia, which fell 0.5 percent to Rp 4,625, and Indonesian Satellite, which lost 1 percent to Rp 5,200.

Shares of carmaker Astra International bucked the trend, rising 1.2 percent to Rp 8,250 on expectations of higher full- year earnings due to improved car sales.

Dealers said they expect the market Tuesday to trade flat to slightly lower on further profit-taking.