Rupiah stable against dollar

JAKARTA (JP): The rupiah stabilized against the U.S. dollar in slow trading yesterday as many traders sidelined the market.

On the spot market, the rupiah closed at 2,610 against the greenback, rising two points from the opening of 2,608.

Tomorrow and today rupiah closed at 2,607.75/13.75 and 2,613/18.

Dealers said operators preferred to stay square ahead of the weekend and further uncertainty in the regional markets.

The market sentiment appeared to be slightly better yesterday as the Thai baht and Singapore dollar were seen strengthening against the U.S. dollar, dealers said.

"This morning we felt some attempts to push the rupiah below the 2,600 level. But there was not enough drive and the central bank was absent from the market," a dealer said.

Share prices on the Jakarta Stock Exchange (JSX) slightly declined yesterday with the composite index falling nearly two points to close at 710.03.

Total turnover was 263.92 million shares changing hands on the regular market valued at Rp 526.41 billion (US$206.43 million).

Head of Research of Penthasena Arthasentosa Securities Mohammad Syahrial said that most investors were in a "wait and see" position due to volatility in the regional currency market.

"We are in quite a difficult position now with the current financial situation," Syahrial said.

"The central bank raised the short-term rates to ease the speculation," a dealer said.

The central bank kept its bilateral Bank Indonesia Certificates (SBIs) at 14.0 percent but raised one-and two-week money by 200 basis points to 10 percent and 10.5 percent respectively while keeping other rates unchanged.

The bank offered one-to-three-day SBIs at 14.0 percent, four- to-six day at 12.0 percent, one-month at 10.5 percent, three at 11.0 percent, six at 11.63 percent and one-year at 12.25 percent.

A local bank dealer said the central bank also scrapped the purchase of short-term money market securities (SBPUs), removing the chance for banks to seek liquidity from the central bank.

"We have to get funds from the market. The central bank is not taking any SBPUs today," a dealer said. (aly)