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Indonesian Rupiah May Appreciate to Below 8,000: Central Bank
The Indonesian rupiah could strengthen to below 8,000 against the U.S. dollar if all noneconomic factors can sustain the market's current optimism, Bank Indonesia Governor Syahril Sabirin said in Jakarta Friday, July 27.
"The rupiah could appreciate up to 8,000 rupiah or less provided noneconomic factors continue to support the market's optimism," he was quoted by the Antara News Agency as saying.
Since the national leadership change from former president Abdurrahman Wahid to newly-elected President Megawati Soekarnoputri last Monday, the Indonesian currency has been gradually appreciating from 11,140 on Friday last week to 10,225 the following Monday while it closed at 9,980 on July 26.
Sabirin said the rupiah could slowly but steadily strengthen further to below 8,000 if the government could handle the noneconomic factors.
He said certain trading circles were well disposed toward Megawati and newly elected Vice President Hamzah Haz whom they said was bringing new hope for the nation.
"Bank Indonesia hopes that conditions can really improve but we are still waiting for the concrete steps the new government will take," Sabirin said.
The central bank governor said he hoped the new government would really bring about improvements in the country's political stability so that the country's monetary conditions could also improve.
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