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Bali News

Rupiah Breaks the 9.000 Level

Rupiah Strength Linked to Economy and Higher Stock Prices.


Bali News: Rupiah, Bank Indonesia, Lindawati Susanto
Click Image to Enlarge

(8/2/2010)

Growing confidence in the Indonesian economy and new investments bolstered a strengthening of the Indonesian Rupiah against U.S. dollar bringing the Rupiah on Tuesday, July 27, 2010 to below Rp. 9,000 for this first time in three years.

The Rupiah closed at Rp. 8.985 against a dollar when trading ended on Tuesday.

In a related economic development, stock prices are also rising across the region.

Quoted in Tempo Interaktif, a currency trader in Jakarta, Lindawati Susanto, said: "Solid economic fundamentals, continuous growth prospect, great market share and promising yields made foreign investors swarm the bonds and stock market."

The currency trader said Bank Indonesia's inability to manage the gain resulted in "the extreme demand for rupiah (which) has brought local currency to around 8,900 a dollar."


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