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#58607 - 13 Aug 07 13:24 ANT/Rupiah plunges in early trade on dollar buying by local traders
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Loc: Jakarta
Rupiah plunges in early trade on dollar buying by local traders

Jakarta (Antara News) - Rupiah at the Jakarta interbank spot market on Monday morning plunged to Rp9,350 against US dollar as market agents bought the US currency on the domestic money market.

The Indonesian unit dropped by 65 points to Rp9,345/9,350 against US dollar compared to Rp9,280/9,300 to the greenback at the closing session last week.

Retail Banking Director of PT Bank Mega Tbk (publicly listed), Kostaman Thayib, said here the domestic money market was still under pressure due to the fluctuating global money market.

The fluctuation triggered market agents to buy US dollar as they were more confident in dollar to rupiah, he said.

According to Kostaman, the market is actually still waiting for follow-up effects of the US subprime mortgage which has pressured the Wall Street due to the crisis in the US housing credits.

A number of analysts are still difficult to predict whether or not the market fluctuation would continue after several central banks spent funds in anticipation of such a condition, he said.

Rupiah would likely continue to slump to Rp9,400 per US dollar but Bank Indonesia (the central bank) might enter the market to anticipate strong pressures against rupiah.

"We are optimistic that the central bank will keep monitoring the movement as US dollar is weakening against Japanese yen on the global market," he said.

Actually, rupiah still has the opportunity to strengthen but worries about the fluctuation of the global money market still remain, he said, adding that rupiah was expected to be bullish in the afternoon. (*)
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#58611 - 13 Aug 07 13:34 Re: ANT/Rupiah plunges in early trade on dollar buying by local traders [Re: KuKuKaChu]
chewwyUK Offline
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Registered: 14 Sep 06
Posts: 2392
Loc: Jakarta
hmm --- chances of this becoming a very serious problem??? if it does over 9500 i am putting everything in USD account
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Edited by Piss Salon
Edit Reason: taste

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#58613 - 13 Aug 07 13:38 Re: ANT/Rupiah plunges in early trade on dollar buying by local traders [Re: chewwyUK]
KuKuKaChu Moderator Offline
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Registered: 09 Oct 05
Posts: 10790
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i'm doing the opposite wink

i've shifted USD20,000 into IDR since last week.
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KuKuKaChu: dangerously too sophisticated

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#58616 - 13 Aug 07 13:47 Re: ANT/Rupiah plunges in early trade on dollar buying by local traders [Re: KuKuKaChu]
kenyeung Offline
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Registered: 16 Apr 07
Posts: 2374
Loc: Indonesia
I bought a pack of Gudang Garam a couple of months ago.

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#58617 - 13 Aug 07 13:51 Re: ANT/Rupiah plunges in early trade on dollar buying by local traders [Re: kenyeung]
KuKuKaChu Moderator Offline
Pooh Bah

Registered: 09 Oct 05
Posts: 10790
Loc: Centre of the Universe
Quoting: kenyeung
I bought a pack of Gudang Garam a couple of months ago.

i sincerely hope that's the last time you will ever do that!

(and don't tell me you've already backslidden.)
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KuKuKaChu: dangerously too sophisticated

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#58620 - 13 Aug 07 13:57 Re: ANT/Rupiah plunges in early trade on dollar buying by local traders [Re: KuKuKaChu]
chewwyUK Offline
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Registered: 14 Sep 06
Posts: 2392
Loc: Jakarta
so you think it could get bad kuku??
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Edited by Piss Salon
Edit Reason: taste

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#58624 - 13 Aug 07 14:04 Re: ANT/Rupiah plunges in early trade on dollar buying by local traders [Re: chewwyUK]
KuKuKaChu Moderator Offline
Pooh Bah

Registered: 09 Oct 05
Posts: 10790
Loc: Centre of the Universe
Quoting: chewwyUK
so you think it could get bad kuku??

depends on the US more than Indonesia at the moment. foreign money is retreating mainly because of external factors.

however, be ready with your USDs and EURs to cash in on the crash!
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KuKuKaChu: dangerously too sophisticated

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#58648 - 13 Aug 07 16:52 Re: ANT/Rupiah plunges in early trade on dollar buying by local traders [Re: KuKuKaChu]
Capt. Mainwaring Offline
Pujangga Besar

Registered: 16 Aug 06
Posts: 3225
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Quoting: KuKuKaChu
i'm doing the opposite wink

i've shifted USD20,000 into IDR since last week.


Too early 'kan?
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I also made a vegetarian version,with tempe and tofu chunks for myself and others.Get over it.
Kosong.Wolo.Setunggal.Setunggal.Setunggal.Kosong.Pitu.Setunggal.Kosong.Wolo=Tempik

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#58655 - 13 Aug 07 17:15 Re: ANT/Rupiah plunges in early trade on dollar buying by local traders [Re: Capt. Mainwaring]
KuKuKaChu Moderator Offline
Pooh Bah

Registered: 09 Oct 05
Posts: 10790
Loc: Centre of the Universe
Quoting: Capt. Mainwaring
Quoting: KuKuKaChu
i'm doing the opposite wink

i've shifted USD20,000 into IDR since last week.


Too early 'kan?

not at all. just a minor hedging move. if it breaks through 11000, however, i'll start moving serious money.
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KuKuKaChu: dangerously too sophisticated

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#58700 - 14 Aug 07 09:03 Re: ANT/Rupiah plunges in early trade on dollar buying by local traders [Re: KuKuKaChu]
Capt. Mainwaring Offline
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Registered: 16 Aug 06
Posts: 3225
Loc: here
If it breaks 11,000 there will be a lot of serious money moved - shame about the interest rates though , at the moment I am making two grand a month interest in the UK and I have to weigh up any gain against the loss of interest.

Nice to know that Okusi is worth robbing........


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I also made a vegetarian version,with tempe and tofu chunks for myself and others.Get over it.
Kosong.Wolo.Setunggal.Setunggal.Setunggal.Kosong.Pitu.Setunggal.Kosong.Wolo=Tempik

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#58713 - 14 Aug 07 11:03 Re: ANT/Rupiah plunges in early trade on dollar buying by local traders [Re: Capt. Mainwaring]
chewwyUK Offline
Pujangga

Registered: 14 Sep 06
Posts: 2392
Loc: Jakarta
I have now moved nearly every Rp. I own in to a USD account. While the USD doesn't seem to be in great shape at the moment I have not been sleeping well at night with thoughts of the IDR becoming worthless again! This thread is to blame for this panic move .. although if the worst does happen i will buy kuku a nice young virgin to thank him for bringing it to my attention
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Edited by Piss Salon
Edit Reason: taste

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#58718 - 14 Aug 07 11:28 Re: ANT/Rupiah plunges in early trade on dollar buying by local traders [Re: chewwyUK]
riccardo Offline
Pujangga

Registered: 12 Oct 05
Posts: 2195
Loc: Jakarta
Check this 5-day chart from yahoo finance. It's quite clear there on Monday mid-morning that the BI injected a couple billion dollars of its reserves to buy Rupiah, but the price just popped right back to the pre-injection level later in the day.



Attachments
chart.png


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Just here proffering my pearls to swine, my throat to wolves and my trousers to the flagpole.

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#58719 - 14 Aug 07 11:33 Re: ANT/Rupiah plunges in early trade on dollar buying by local traders [Re: riccardo]
riccardo Offline
Pujangga

Registered: 12 Oct 05
Posts: 2195
Loc: Jakarta
Wouldn't be surprised if all the BI execs and their family members -- who knew the exact time of the injection -- Immediately used Rupiah from their personal accounts to buy dollars when it spiked at 9200.
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Just here proffering my pearls to swine, my throat to wolves and my trousers to the flagpole.

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#58721 - 14 Aug 07 11:42 Re: ANT/Rupiah plunges in early trade on dollar buying by local traders [Re: riccardo]
riccardo Offline
Pujangga

Registered: 12 Oct 05
Posts: 2195
Loc: Jakarta
They have a nice little real-time chart here:

http://www.forexdirectory.net/idr.html
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Just here proffering my pearls to swine, my throat to wolves and my trousers to the flagpole.

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#58722 - 14 Aug 07 11:43 Re: ANT/Rupiah plunges in early trade on dollar buying by local traders [Re: riccardo]
chewwyUK Offline
Pujangga

Registered: 14 Sep 06
Posts: 2392
Loc: Jakarta
I would be certain of it ric
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Edited by Piss Salon
Edit Reason: taste

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#58881 - 15 Aug 07 14:46 Re: ANT/Rupiah plunges in early trade on dollar buying by local traders [Re: chewwyUK]
naga Offline
Member++

Registered: 18 Jan 07
Posts: 260
Loc: undisclosed location
why on earth would you have a rupiah a/c for?

The US economy and currency is still the strongest in the world and will be for the nearest future; all business and economic trends occur in cycles, the US is headed for a slight market correction (albeit a large one)and it will continue on, it will improve in the long run, people always focus on the short term, especially in the finance world...
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#58890 - 15 Aug 07 16:05 Re: ANT/Rupiah plunges in early trade on dollar buying by local traders [Re: naga]
Capt. Mainwaring Offline
Pujangga Besar

Registered: 16 Aug 06
Posts: 3225
Loc: here
Quoting: naga
why on earth would you have a rupiah a/c for?

The US economy and currency is still the strongest in the world and will be for the nearest future; all business and economic trends occur in cycles, the US is headed for a slight market correction (albeit a large one)and it will continue on, it will improve in the long run, people always focus on the short term, especially in the finance world...


Oh yah Naga - can I suggest you buy a newspaper? The US is just about to go on it's arse and the UK is following.
_________________________
I also made a vegetarian version,with tempe and tofu chunks for myself and others.Get over it.
Kosong.Wolo.Setunggal.Setunggal.Setunggal.Kosong.Pitu.Setunggal.Kosong.Wolo=Tempik

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