Rupiah Strengthens Against US Dollar

 
 
 
 
 
 
 
 
 
 

Jakarta - The rupiah slightly strengthened against the US dollar in the Jakarta interbank spot market here on Tuesday morning.

The Indonesian currency traded Rp9,213-Rp9,223 per US dollar, up 7 percent from Rp9,220-Rp9,230 at the market`s close a day earlier.

The rupiah`s position at above the level of Rp9,213 was quite convenient, and it also showed that Bank Indonesia (BI, the country`s central bank) kept guarding the local currency, according to Edwin Sinaga, director of PT Finan Corpindo Nusa.

"We are optimistic that BI still guards the rupiah`s appreciation so that it will not pass the level of Rp9,200 per US dollar," he said.

He predicted that the rupiah would continue to move upward but rather slowly due to the prolonged Bank Century bailout case.

He explained that the rupiah had nothing to do with the bailout case, but the prolonged problem could affect the rupiah rally.

Meanwhile, the Composite Stock Price Index (IHSG) at the Indonesian Stock Exchange (BEI) got off to a strong star here on Tuesday morning on cigarette and banking share buying.

The BEI index went up 11.198 points or 0.47 percent to 2,650.233 points and the LQ-45 index rose 2.298 points or 0.48 percent to 522.432 points.