Rupiah goes stronger on weaker dollar, BNI says

JAKARTA: Rupiah is potentially to strengthen today on weaker US dollar while strong foreign exchange reserves will ensure the currency to move stable below IDR9,000.BNI Treasury Research Division this morning saw a tendency for the local currency to consolidate and finally strengthen amid higher dollar demand for year-end settlement. " Higher dollar demand will not affect the rupiah with dollar at wekaer position. Bank Indonesia will closely monitor the rupiah's move on the support of strong foreign exchange reserves of US$94.7 billion," it said in the morning report.The state lender noted that rupiah was closed weaker at IDR8,995 yesterday after moving as high as IDR8,970. The local currency got pressure from the performance of domestic stock market which succeeded to top 3,700. The fundamental issues like higher inflation tendency and estimation on Indonesian export-import increases will put stronger underlying for rupiah to appreciate further. BNI sets the support-resistant levels at IDR8,925-IDR9,015 and suggests to buy at IDR8,940 and sell at IDR9,000. USD/JPY is predicted to strengthen around 80.00-83.10 yen. It recommends buy at 81.00 yen and sell at 81.80 yen. (NOM)