Jakarta (ANTARA News) - The rupiah in the Jakarta interbank spot market on Monday morning strengthened 16 points to Rp9.466-Rp9.475 per dollar compared to Rp9.482-Rp9.495 per dollar at the market`s close last weekend.

Money market observer Edwin Sinaga said in Jakarta on Monday the factors that strengthened the rupiah were the fact that market players still saw Indonesia as a potential market where conditions were improving although still below China and India.

The country`s improving fundamental factors and trade balance also encouraged market players to re-buy rupiahs.

Edwin Sinaga who is also managing director of Finan Nusa Corpindo said strong domestic demand in 2010 would also enable the rupiah to strengthen further.

Rising commodity prices were pushing up the country`s current account and this also contributed to political stability, he said.

Therefore, the rupiah did not drop to far down over Rp9.500 per dollar figures, the rupiah will still range from Rp9.450 to Rp9.475 per dollar.

But the stock market price correction at the end of this year is expected to shadow the Rupiah`s movements, he said.

The Rupiah current position is above Rp9.400 per dollar, according to him that this is only temporary and will eventually bounce back to be under Rp9.400 per dollar.

The market was still positive , but due to the Century Bank case and the conflict between the Police and the Corruption Eradicating Commission (KPK) foreign players seemed reluctant to become more active.

Foreign players were still concerned about uncertainty int he legal field and therefore the government should immediately issue e more policies to encourage foreign players to continue operating in the domestic market, he said.

He said the rupiah would rebound, considering the high foreign players` interest in buying rupiahs and the improved financial performance of emitters in the first nine months of 2009, he said .(*)

Editor: Heru

COPYRIGHT © 2009

Comment
Send Comment