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 Indonesia’s Rupiah Strengthens for Ninth Day Before Growth Data
By Khalid Qayum - August 2, 2010 23:40 EDT

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 Aug. 3 (Bloomberg) -- Indonesia’s rupiah advanced for a ninth day, its
longest winning streak since December 2005, before a report this week that’s
forecast to show the fastest quarterly economic growth since 2008.

Bank Indonesia will tomorrow keep its benchmark interest rate at a
record-low 6.5 percent for a 12th straight month to support expansion,
according to all 22 economists in a Bloomberg survey of economists. Gross
domestic product
<http://www.bloomberg.com/apps/quote?ticker=IDGDPY:IND>increased 6
percent from a year earlier in the last quarter following a 5.7
percent advance in the previous three months, based on the median estimate
in a separate poll. The data is due Aug. 5.

“Sentiment is buoyant on economic growth, which is supporting the rupiah,”
said Joanna 
Tan<http://search.bloomberg.com/search?q=Joanna+Tan&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1>,
a regional economist at Forecast Singapore Pte. “Definitely, we will see
good growth numbers for the second quarter.”

The rupiah rose 0.1 percent to 8,943 per dollar as of 10:25 a.m. in Jakarta,
according to data compiled by Bloomberg. It’s appreciated 11 percent in the
past 12 months and earlier today reached 8,905, the strongest level since
June 2007. The central bank may intervene at 8,900 to limit gains, Tan said.


Overseas investors yesterday bought $11.4 million more Indonesian stocks
than they sold, boosting net purchases for the year to $1.4 billion. They
pumped $541 million into the securities last month, the most since April
2007.

The Indonesian rupiah may strengthen further and the central bank will
continue to guard the currency against excessive gains, Bank Indonesia
Deputy Governor Hartadi Sarwono said July 30. President Susilo Bambang
Yudhoyono is targeting average annual economic growth of 6.6 percent.

To contact the reporter on this story: Khalid
Qayum<http://search.bloomberg.com/search?q=Khalid+Qayum&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1>in
Singapore at
[email protected];

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