Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>   Economy  >>   Rupiah falls after intervention
NEWS UPDATES Asean Affairs  28 October 2010

Rupiah falls after intervention

Related Stories

October 21, 2010
Indonesia's Rupiah Gains on Optimism

October 7, 2010
Indonesia to sell 60 percent of oil stocks

October 6, 2010
Indonesia to raise sustainable economy issues

October 1, 2010
Indonesian growth forecast looks good

September  30, 2010
Indonesia set for rating upgrade

The Indonesian rupiah fell the most in six weeks after the central bank said the potential for further appreciation was limited.

The currency reached a three-year high on Monday after the Group of 20 nations pledged over the weekend to refrain from weakening their currencies.

Bank Indonesia sees the rupiah's "fundamental" level at 8,900 to 9,300 against the US dollar, Governor Darmin Nasution said on Wednesday. The central bank will "guard" the rupiah at its fundamental level and buy foreign currencies to control the local currency's volatility, he said.

"The authorities don't seem keen to allow for substantial exchange-rate appreciation," Taimur Baig, chief economist at Deutsche Bank in Singapore, the world's biggest currency trader, wrote in a note on Wednesday."

As equity and bond market rallies continue and the rupiah remains under sustained appreciation pressure, the risk of capital controls is rising."

The rupiah weakened 0.3 percent to 8,943 per dollar as of the market's close in Jakarta.

The currency has gained 5 percent this year and reached 8,896 on Monday, its strongest level since June 2007.

Bank Indonesia has intervened to prevent the rupiah from becoming too strong, Deputy Governor Halim Alamsyah said on Friday without elaborating.

Central banks intervene in currency markets by arranging purchases or sales of foreign exchange.

Indonesia's local-currency bonds are this year's best performers among Asia's 10 biggest economies excluding Japan, returning 25 percent, according to HSBC Holdings.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand