RUPIAH,
BOUNDS GAIN GROUND ON FOREIGN FUND INFLOWS
The rupiah
gained ground in local trading as a rising inflow of foreign
fundsinto the country’s
assets helped the currency to strengthen, while slowing overseas
debt save the country’s international reserves.
The currency
gained almost 3,4 percent against the dollar so far this year and
the government
10-year bonds gained as their yields fell to 8,354 percent on
Thursday, the lowest level since nov.8, according to Bloomberg data.
Overseas debt
slowed to 4,6 percent to $264 billion last year, from a 12 percent
increase a year earlier, central bank data showed on thrusday.
Vaninder
Singh, Singapore-based economist for southeast Asia at Royal Bank of Scotland,
said a narrowing-current account deficit should boost the rupiah this year.
“I
expect, at least, that the rupiah would be traded at a stable range
around where
it is right now for this year,” Singh said
The
currency strengthened 0,7 percent to 11.772 against dollar on Thursday,
according to Bank Indonesia data. The government expected the rupiah to trade
between 11.500 to 12.000 against the greenback this year.
The
current-account deficit narrowed to 2,5 percent of gross domestic
product in the fourth quarter last year from 3,8 percent in third quarter.
Singh also
expect that the legislative election in April and the
presidential vote in July not to create political instability, or to
put pressure on the currency.
“Because
(political) institutions
are stable enough for the market not to worry about it”, he said
Foreign
holdings of the
country’s bonds have risen by almost Rp 14,12 trillion ($1,2 billion)
alone this year to Rp 337,95 trillion in February, according to data from the
debt management office of the finance ministry. That the compares with Rp 323,83 trillion
by the end of December last year.
Foreigners also
bought Rp 8,4 trillion more in stocks than they have sold on the Indonesian Stock Exchange (IDX) so far this year.
Bank Indonesia
has made frequent attempts to deepen the domestic money market,
including the introducing of a master repurchase agreement among local lenders
in December
The
repo agreement-a
securities sale allowing sellers to buy back securities at a later
date- is aimed at shoring up the less-liquid domestic money market and provide
foreign investors with ample counter-parties when they want to withdraw their money from
Indonesia.
Tenses
·
Simpe past tense
·
Simple past tense
·
Simple past tense
·
Simple past tense
·
Simple past tense
·
Simple past tense
·
Past future tense
·
Simple present tense
·
Simple past tense
·
Simple past tense
·
Simple present tense
·
Simple present tense
·
Simple present tense
·
Present perfect tense
·
Simple present tense
·
Simple past tense
·
Present perfect tense
·
Present perfect tense
·
Simple present tense
· Simple present tense
Aisah
Maulida
3eb23
28211464