Exchange rate of rupiah against the U.S. dollar in the Jakarta interbank spot market on Monday (19/4/2010) morning, weakened 28 points to Rp9.033-Rp 9043 per U.S. dollar from its close last weekend Rp9.005-USD 9015, as market participants took off rupiah. Money market observer Edwin Sinaga said here on Monday said the rupiah weakened by Bank Indonesia (BI) was still in the market so as not to suppress the rupiah continues to strengthen.
     
"BI does not want the rupiah was under Rp9.000 per U.S. dollar figures, because the exporters sell products less competitive in export markets," he said. Rupiah, according to Edwin Sinaga, also pressured by the weakening U.S. stocks are pressing regional exchanges such as the stock exchanges of Tokyo and Hong Kong at the opening of markets to weaken. "We are optimistic that the negative pressure of the market will not continue, because the positive sentiment to push rupiah under Rp9.000 numbers are still quite strong," he said.

According to him, the flow of foreign funds are placed in the domestic money market, the BI instruments, and government bonds are still happening. Therefore, opportunities for re rupiah under Rp9.000 per U.S. dollar figures are still strong. "Even the flow of foreign funds that had occurred during the three months to March 2010 had reached the figure of Rp 71.9 trillion," he said.
      
So, he continued, the current correction merely restrain the movement amount can not be sped up so far below Rp9.000 per U.S. dollar. Previous amount had reached below the level of Rp9.000 per U.S. dollar, but the increase is too rapid rupiah raised fears that a foreign power Indonesia's exports will weaken. "Therefore, the central bank tried to get down to the market by releasing reserves, let alone all the stronger dollar position is less favored by exporters who had difficulty setting the selling price of its products in export markets," he said.