DJ Dollar Ends At IDR10,125 Vs Rupiah; Lowest Since Oct 28 JAKARTA (Dow Jones)--The Indonesian rupiah closed Wednesday at its strongest level against the U.S. dollar in around seven months after the central bank cut rates and the local stock market continued its recent strong upward trend. The dollar fetched IDR10,125 at the close of trading, compared with IDR10,270 Tuesday. That was the lowest close against the rupiah since Oct. 28 last year when the dollar was at IDR10,000.
Bank Indonesia on Wednesday cut its policy rate by 25 basis points to 7.00% and said there could be more rate cuts to come as long as inflation remains in check. That pushed the main index of the Indonesia Stock Exchange up 0.5%. The index has risen almost 50% since the start of this year. Currency dealers said Bank Indonesia's auction of short-term notes, or SBI, also drew inflows and supported the rupiah, while government bond prices continued their recent gains. They said the rupiah could continue strengthening Thursday with the dollar likely finding support at IDR10,075 and resistance at IDR10,150.
