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Jakarta (ANTARA News) - Bank Indonesia (BI) Deputy Governor Hartadi A Sarwono said the central bank would keep monitoring the movements of the rupiah`s exchange rate so that it would not appreciate too fast.

The national currency which has so far stayed at the Rp9,000 level against the US dollar appreciated to Rp8,953 per US dollar on Friday.

Hartadi said the rupiah`s 0.28 percent appreciation on Friday occurred due to the weakening of the greenback globally.

"The US dollar has weakened because of market concern over US economic recovery which is feared to slow down. Latest US economic data indeed showed a decline. On the other hand, economic data in several Asian countries are showing strength. All Asian currencies are strengthening except the Thai baht," he said.

He said expectations that the dollar would weaken in addition to high hopes after Indonesia was declared to have reached investment grade status and put inflation under control had prompted many foreign investors to buy state debentures (SUN).

The SUN yield for a 10-year period now was 8.05 percent and it is expected to further drop, he said.

SUNs held by foreign investors per July 29 reached Rp171.5 trillion, up by Rp9.8 trillion in July. While the Bank Indonesia Certificates stood at Rp41.2 trillion per July 29, down Rp0.6 trillion during the month of July. The flow of foreign funds into shares in July meanwhile reached Rp4.8 trillion.

The rupiah was traded in the interbank sport market at Rp8,950 - Rp8,960 per dollar up 25 points from the previous days` level of Rp8,975-Rp8,985.(*)

Editor: Heru
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