Rupiah`s fall not caused by decreased confidence in Indonesia`s economy

Jakarta (Antara News) - Bank Indonesia (BI) Senior Deputy Governor Miranda S Goeltom said Friday the rupiah`s current weakening was not caused by decreased confidence in the Indonesian economy.

"Almost all other currencies are weakening," she said in a discussion here.

BI as the central bank would always keep the rupiah`s volatility in check to prevent it from undergoing an upheaval that might endanger the economy, she said.

She added, however, that BI would not fix the rupiah`s exchange rate at a certain level as it had adopted a floating exchange rate regime.

The rupiah`s present depreciation would be temporary, she said.

Budi Mulya, director of the central bank`s public relations and strategic planning, said the rupiah`s depreciation was triggered by global sentiments.

He said Bank Indonesia was continuing to keep abreast of the rupiah`s movements.

The rupiah was trading at Rp9,205/9,210 per dollar on the Jakarta interbank spot market on Friday evening, down by 97 points from Thursday`s closing at Rp9,108/9,176 per dollar.

Edwin Sinaga, money market observer, said almost all other main currencies were under market pressure.

The rupiah`s weakening was caused by external factors and not by internal factors, he said.

Market pressure on the rupiah began when the dollar strengthened against the yen after foreign investors bought dollars in the wake of its overnight plunge in New York, he said.(*)
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