Indonesian Rupiah; Jakarta Stock Market Rise

by :Khalid Qayum & Berni Moestafa Jakarta. Indonesia’s rupiah climbed on Tuesday to the strongest level in a month after the government estimated Southeast Asia’s biggest economy would expand more in the second half than it did in the first six months. The Indonesian rupiah and Jakarta Composite Index have risen early on Tuesday. The currency advanced for a fourth day as the MSCI Asia Pacific Index of stocks advanced. The economy likely grew 5.8 percent in the period ended June and may expand 6 percent in the second half, the Finance Ministry said yesterday. The government also forecast its budget deficit will narrow to 1.5 percent of gross domestic product this year from 1.6 percent in 2009. “Investor appetite for Indonesian assets is increasing as sentiment is positive” on the domestic economy, said Muhammad Fauzi Halim, a foreign-exchange trader at PT Bank Resona Perdania in Jakarta. The rupiah strengthened 0.2 percent to 9,013 per dollar as of 9:54 a.m. in Jakarta. The currency will trade between 9,010 and 9,040 today, Fauzi said. Read more of this article  Read More →

---

Rupiah Weakens against US Dollar

The rupiah weakened against the US dollar in the Jakarta interbank spot market Thursday morning on growing market pressures. JAKARTA, KOMPAS.com – The rupiah weakened against the US dollar in the Jakarta interbank spot market Thursday morning on growing market pressures. The Indonesian currency traded Rp9,065-Rp9,075 per US dollar, down 25 points from  Rp9,040-Rp9,050 at the market’s close a day earlier. The market was under pressure following a statement by US Federal Reserve Chairman Ben Bernanke that the US economy was facing “unusually uncertain” prospects, and that the central bank was ready to take further steps to bolster growth if necessary. “Even as the Federal Reserve continues prudent planning for the ultimate withdrawal of monetary policy accommodation, we also recognize that the economic outlook remains unusually uncertain,” Bernanke told the Senate Banking Committee. US stocks turned lower to trade down modestly after the testimony was released, while the dollar extended losses versus the yen and US Treasuries rallied, with the 30-year bond gaining a full point. The market pressure encouraged investors to release the rupiah and buy the greenback, according to Rully Nova, a foreign exchange analyst of PT Bank Himpunan Saudara Tbk. Read more of this article  Read More →

---

Yen Heads for Weekly Gain on U.S. Slowdown; Kiwi Drops on Inflation Report

The yen approached the strongest this year against the dollar, as signs the U.S. economy is losing momentum fueled speculation the Federal Reserve will keep interest rates near zero. Read more of this article  Read More →

---