RUPIAH WEAKENS TO OVER 9,300 AGAINST DOLLAR

Jakarta, Feb 18 (ANTARA) - The rupiah's exchange rate against the US dollar in the Jakarta interbank spot market on Thursday weakened sharply to Rp9,315-Rp9,325 or by 50 points from Rp,265-Rp9,275 at the market's close a day earlier.

The depreciation was caused by market players' profit-taking moves after the local unit had remained below the level of Rp9,300 per US dollar over the last two days.
Kostaman Thayib, PT Bank Mega 's retail banking director, said the Jakarta money market was dominated by market players' rupiah releasing actions for profit after the local currency's sharp appreciation over the past a few days.

Market players seemed to have considered the positive issue from overnight Wall Street Stocks gains , after new data were released showing the US economy was coming out of recession, including a resurgence in the new housing sector.

The rupiah releasing actions were caused by the market player's profit taking, instead of Rupiah buy-back after the Chinese New Years celebration, Thayib said.

Besides the Chinese and Taiwan money markets are still celebrating the Chinese New Year holidays he said.

According to Thayib, the rupiah's current position was still good, because it was still in the Rp9,300 - Rp9,500 per dollar range.

"The rupiah's position is still pretty good, although it has been corrected/ There is no need to worry that the rupiah will continue to slump to above that range," he said.

The rupiah still had a chance to bounce back, because the Indonesian macro economic indicators were also quite good, especially with the inflation rate in January 2010 having reached a normal level.

"We are optimistic the rupiah will come out of its present downturn , especially now that the stock market has improved on the back of strengthening US stocks," he said.