Rupiah flirts with 8,000 level to dollar
Rupiah flirts with 8,000 level to dollar
JAKARTA (JP): The rupiah weakened against the U.S. dollar in
moderate trading on Tuesday, breaking briefly through the 8,000
level as fresh year-end demand hit the market.
Currency dealers said bearish sentiment on other regional
currency markets coupled with fresh dollar demand by local state
banks put the rupiah under severe pressure.
The rupiah, which was traded in a narrow range of between
7,950 and 8,100, ultimately closed at 8,000, unchanged from the
day before, dealers said.
"But minor intervention by the central bank reversed the
rupiah's declining trend," a chief dealer with a local private
bank said.
Dealers said several state banks sold dollars for the rupiah
when the local unit was trading at the 7,900 to 8,100 level.
Share prices on the local market also fell on Tuesday due to
the absence of fresh leads ahead of the year-end holiday.
The Jakarta Stock Exchange (JSX) composite index fell 0.8
percent (3.44 points) to 396.73 on a total turnover of 102.32
million shares valued at Rp 88.09 billion.
Losers outpaced gainers by 50 to 35, with 85 stocks unchanged.
Stockbrokers said that bearish sentiment in the regional
equity market further dampened investor sentiment in the local
hammered bourse.
"Overall market sentiment is still gloomy as investors are
still in their holiday mood," said Imelda Kwan, an institutional
sales broker with Trimegah Securindolestari.
Stockbrokers noted that some foreign brokerage firms absent
from the local market in the past few days returned to the bourse
on Tuesday.
Jardine Fleming Nusantara, ING Barings Securities Indonesia,
SBC Warburg and Vickers Ballas Tamara were among the net sellers
while ABN Amro and Credit Lyonnais Indonesia were on the buying
side, brokers said.
Analysts said share prices in the local stock market would
continue their declining trend in the last trading day this year
as most investors were reluctant to reenter the local bourse.
"I doubt if there is any interest by investors in the last
trading day of this year," an analyst with a local securities
firm said.
Wednesday is the last trading day on the local financial
market. It is closed on Thursday and Friday for the New Year's
holiday and will reopen on Monday.
Securities analysts and brokers said that bearish sentiment in
the local market would likely continue until the second week of
January until many investors returned from the long break. (aly)